Providence Equity exits Idea Cellular

The deal has taken place at a time when Idea is in talks with its peer Vodafone on a possible merger

US-based private equity (PE) player Providence Equity Partners sold 3.3 per cent of its stake in telecom provider Idea Cellular through a block deal on Tuesday. 

The total value of the deal was Rs 1,278 crore and multiple investors, including Goldman Sachs, picked up the stake, BSE data showed. The stake sale marks the complete exit of Providence from Idea.  The Idea stock on the BSE on Tuesday closed up 0.7 per cent at Rs 115.45. 

The deal has taken place at a time when Idea is in talks with peer Vodafone on a possible merger and the news led to spiralling of the Idea stock. The scrip has surged nearly 65 per cent since its low in January.

Providence had bought 15 per cent in Idea Cellular in 2006 for Rs 1,800 crore through its investment arm, P5 Asia Investment (Mauritius). Since then, it has diluted its stake in tranches. The earlier one was in June 2016, when the PE investor sold 3.3 per cent stake through a block deal worth Rs 1,375 crore. 

Citigroup was the sole manager for the issue.