Idea to raise Rs 750 cr through preferential issue

Board has approved issuance of 5.18 crore shares at a price of Rs 144.68 per equity share to Axiata Investments 2 (India) Ltd

Idea Cellular has said it will raise Rs 750 crore by issuing equity shares on preferential basis to its shareholder, Malaysia-based Axiata.

Idea said the securities allotment committee of the board, at its meeting on June 10, has approved issuance of 5.18 crore shares at a price of Rs 144.68 per equity share to Axiata Investments 2 (India) Ltd.

"Approved making of issuance of up to 5,18,38,540 equity shares of Rs 10 each for cash at a price of Rs 144.68 per equity share aggregating to approx Rs 750 crore, on a preferential basis to Axiata Investments 2 (India) Limited (a wholly owned subsidiary of Axiata Group Berhad, Malaysia), subject to necessary approvals," Idea said in a filing to the BSE.

It said the company will convene an extra-ordinary general meeting on July 10, for approval of the aforesaid preferential issue.

It is raising funds for spectrum auctions later this year. Nine circles in which Idea Cellular holds spectrum in the premium 900 MHz band are coming up for renewal between December 2015 and April 2016.