Idea Cellular approves raising Rs 3,250 crore

Mumbai, Jan 4 :  Idea Cellular board on Thursday approved raising Rs 3,250 crore through a preference share issue to promoters, the company announced.

Separately, the company’s board has also constituted a committee of Board members to evaluate potential routes for raising further capital of up to Rs 3,500 crore, including, among others, further Preferential Issue, Qualified Institutional Placement (QIP), Rights Issue. 

“The Board of Directors of Idea Cellular Limited, today approved issuance of 326.6 million equity shares at a price of Rs 99.50 per share on preferential basis to the Promoter group entities Birla TMT Holdings Private Limited/Elaine Investments Pte. Ltd. (Singapore)/Oriana Investments Pte. Ltd. (Singapore)/Surya Kiran Investments Pte. Ltd. (Singapore). The aggregate capital infusion will be of Rs 32,500 million,” a company statement here said.

“The Aditya Birla Group remains committed towards the telecom business. The group is in the process of creating a large digital infrastructure and to contribute significantly towards fulfilment of the ‘Digital India’ vision of the Hon’ble Prime Minister. At a time when the telecom industry is going through a challenging environment, this equity infusion by the group in Idea is another step towards reinforcing the group’s commitment,” said Kumar Mangalam Birla, Chairman, Idea Cellular Limited.

The equity issue is subject to shareholders and other regulatory approvals.

An Extraordinary General Meeting (EGM) of shareholders will be convened on January 30. The issue is expected to complete by early February, after which the shareholding of promoter group in Idea will increase to 47.2 per cent from existing level of 42.4 per cent.