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Idea Cellular allots Rs 32-bn shares on preferential basis to promoters

Idea Cellular, equity shares were allotted at an issue price of Rs 99.50 per share including premium of Rs 89.50 per share aggregating to Rs 32.5 billion

IANS  |  Mumbai 

Idea

Telecom major on Monday raised Rs 32.5 billion through allotment of 326.5 million equity shares to the Group entities.

According to a statement from Idea Cellular, equity shares were allotted at an issue price of Rs 99.50 per share including premium of Rs 89.50 per share aggregating to Rs 32.5 billion.

The company said that as a result of "this preferential allotment", the aggregate shareholding of the group (Aditya Group) in Idea has increased from 42.4 per cent to 47.2 per cent.

"This equity infusion reiterates the Group's commitment towards the telecom and confidence in its growth prospects," Kumar Mangalam Birla, Chairman, Aditya Group, was quoted as saying in the statement.

"Idea is in the process of bringing a world-class 4G network to villages, towns and cities across that will contribute to the transition of the Indian populace towards a digital lifestyle.

"With the planned fundraiser 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."

As per the statement, the current equity infusion along with the proposed further capital raise of up to Rs 35 billion, 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.

"Additionally, the recently announced sale of Idea's and Vodafone India's standalone towers to for an aggregate enterprise value of Rs 78.5 billion 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," the statement said.

"These proceeds will significantly strengthen the balance sheet of the merged entity (Idea and Vodafone India) creating a resilient entity for the future," said the statement.

 

First Published: Mon, February 12 2018. 17:48 IST
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