Idea raises Rs 3,250 cr from promoters

Telecom operator Idea Cellular on Monday said it has raised Rs 3,250 crore by allotting over 32.6 crore shares to the promoter group companies.

"Idea Cellular Limited today (Monday) completed the allotment of 326,633,165 equity shares to the Aditya Birla Group (ABG) entities, at an issue price of Rs 99.50 per share (including premium of Rs 89.50 per share) aggregating to Rs 3,250 crore," Idea said in a statement.

The preferential allotment of equity shares follows the approval by the board of Idea on January 4 for a total capital raise of up to Rs 6,750 crore, which includes raising of Rs 3,250 crore through a preferential allotment to the promoter group.

It would raise another Rs 3,500 crore through a further preferential allotment, qualified institutional placement, rights issue or such other route that the company's board determines.

As a result of this preferential allotment, the aggregate shareholding of the promoter group in Idea has increased from 42.4-47.2%.

"This equity infusion reiterates the group's commitment towards the telecom business and confidence in its growth prospects. 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," Aditya Birla Group Chairman Kumar Mangalam Birla said.

The equity infusion by the promoter group of Rs 3,250 crore, along with the proposed further capital raise of up to Rs 3,500 crore, will reduce Idea's net-debt and as a result Vodafone's net-debt contribution to the merged entity will also be reduced by an equivalent amount, the company said in a statement.