Idea Cellular, the country’s third largest wireless operator by subscribers, has raised ₹3,250 crore through preferential allotment of shares to promoter Aditya Birla Group entities. Following the allotment, the shareholding of promoter group in Idea rose increased to 47.2 per cent from the earlier 42.4 per cent.
The telecom operator has allotted 32.66 crore equity shares at ₹99.50 per share, the company said in a statement.
“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,” Kumar Mangalam Birla, Chairman of Aditya Birla Group said.
“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,” he added.
Idea Cellular, which is closing to merging its operations with number two operator Vodafone India, said earlier in January that it was in the process of raising up to ₹6,750 crore in equity. The company will raise the remaining through a preferential allotment, qualified institutional placement, rights issue or any other route that board decides.
Additionally, the recently announced sale of Idea’s and Vodafone India’s standalone towers to American Tower Corporation for about ₹7,850 crore and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will further augment the long-term capital resources of the company. These proceeds will significantly strengthen the balance sheet of the merged entity, Idea and Vodafone India, it said in a statement.
Idea Cellular shares ended up 1.01 per cent at ₹84.70 on the BSE, which closed up 0.87 per cent on Monday.