New Delhi: Vodafone India and Idea Cellular have completed their merger to create the country's largest telecom company with 408 million active subscribers and a market share of 32.2 per cent that will take on competition from Reliance Jio.

"We wish to inform you that pursuant to the filing of the NCLT orders with the relevant Registrar of Companies on August 31, 2018, the scheme has become effective on even date and the merger of VMSL (Vodafone Mobile Services Ltd) and VIL (Vodafone India Ltd) with the company has been completed," Idea Cellular, in a regulatory filing, said on Friday.

A new board has been constituted for the merged entity - Vodafone Idea Ltd - with 12 directors (including six independent directors) and Kumar Mangalam Birla as the chairman.

The board has appointed Balesh Sharma as the CEO, the companies said in a joint statement.

Himanshu Kapania has stepped down from the position of managing director of Idea Cellular with effect from August 31, 2018, but shall serve as the non-executive director of the new company.

The combination will take the No.1 slot in nine telecom circles and both the Vodafone and Idea brands will continue.

The new telecom giant will topple Bharti Airtel from its current pole position and will have the firepower to take on competition in the domestic telecom market, where competition has intensified with the aggressive entry of Reliance Jio.

Vodafone will own a 45.1 stake in the combined entity, while Aditya Birla Group will own 26 per cent and Idea shareholders 28.9 per cent.

The merged entity will have about 1,850 MHz of spectrum, over 2 lakh mobile sites and about 2.35 lakh km of fibre. This will allow it offer "superior service".