`

Feedback

Reader's Poll

Which of the following technologies/concepts are likely to witness significant traction this year?
 
Any data to show

Teledata

Tele Data

Mobile Subscribers Yearwise comparision

Idea Cellular raises Rs 32.50 billion through preferential allotment to promoters

February 12, 2018

Idea Cellular has completed the allotment of 326.63 million equity shares to the Aditya Birla Group entities, at an issue price of Rs 99.50 per share, including premium of Rs 89.50 per share totalling Rs 32.50 billion.

Post the preferential allotment, the shareholding of the promoter group in Idea has increased from 42.4 per cent to 47.2 per cent. The allotment follows the approval by the board of directors of Idea on January 4, 2018. As per the approval, a total capital raise of up to Rs 67.50 billion including Rs 32.50 billion through a preferential allotment and up to Rs 35 billion through a further preferential allotment, qualified institutional placement, rights issue as decided by the board.

The equity infusion will reduce Idea’s net debt. Additionally, the recently announced sale of Idea’s and Vodafone India’s standalone towers to American Tower Corporation for Rs 78.50 billion and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will further add to the company’s long term capital resources.

Announcing the completion of the preferential issue, Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “This equity infusion reiterates the group’s commitment towards the telecom business and confidence in its growth prospects. Idea is in the process of bringing a world class 4G network to villages, towns and cities across India that will contribute to the transition of the Indian populace towards a digital lifestyle. With the planned fund raise combined with the recently announced sale of Idea’s towers and potential monetisation of the Indus stake, the Company will be better capitalised to participate in the growth opportunities offered by the sector.”

 
 

To post comments, kindly login

  • Most Viewed
  • Most Rated
  • Most Shared
  • Related Articles
 Your cart is empty

BIF

IMC

Ciena

Monday morning