You are here: Home » Companies » News
Business Standard

Idea unveils Rs 67-bn fundraising plan ahead of Vodafone merger deal

As part of the plan, Idea will raise 32.5 billion rupees by selling 326.6 million shares


A woman speaks on her mobile phone as she walks past a shop displaying the Idea Cellular Ltd's logo on its shutter in Kolkata | Photo: Reuters

Cellular Ltd, India's third-largest mobile services operator, on Thursday unveiled a 67.5 billion-rupee ($1.1 billion) fundraising plan ahead of its merger with Vodafone's local unit.

As part of the plan, will raise 32.5 billion rupees by selling 326.6 million shares on a preferential basis to controlled by its parent at 99.5 rupees apiece.

The deal will increase Aditya Birla Group's stake in to 47.2 per cent from 42.4 per cent currently.

further intends to raise up to 35 billion rupees by selling shares, the company said in a statement, adding the options included a rights issue, preferential issue or a share sale to institutions.

In March last year, and announced a merger deal to potentially create the biggest Indian phone carrier. The deal is expected to close this year.

As part of the deal, had agreed to buy a minimum of 2.5 per cent stake of the merged entity from to own at least 26 per cent of it.

Aditya Birla and will eventually own an equal share of the joint venture, the said last year.

said in a filing on Thursday it expected the merger deal to be completed during the first half of this year.

shares closed 1.8 per cent higher on the index, while shares were little changed in London trading as of 1020GMT.

First Published: Thu, January 04 2018. 16:35 IST