Idea Cellular raises Rs 35 billion via QIP, allots 424 mn shares to buyers

Mobile operator Idea Cellular on Friday said it has successfully closed a Qualified Institutions Placement (QIP) to raise Rs 35 billion.

The company has issued and allotted about 424 million equity shares to qualified institutional buyers at an issue price of Rs 82.50 per equity share (including a premium of Rs 72.50 a share), amounting to about Rs 35 billion.

"The issue witnessed interest from a global investor base. The issue allocation is approximately 56 per cent and 44 per cent to Indian and foreign investors respectively," the company said in a statement here.

DSP Merrill Lynch and Citigroup Global Markets India acted as global coordinators and book running lead managers to the issue, the statement added.

"This equity raise of Rs 35 billion along with recent infusion of Rs 32.5 billion by Ideas promoter/ promoter group will reduce Ideas net-debt by approximately Rs 67.5 billion," it added.

Also, the company has recently announced the sale of Ideas and Vodafone India's standalone towers to ATC Telecom Infrastructure, a subsidiary of American Tower Corporation for an total enterprise value of Rs 78.5 billion, the company said.

"Further, we continue to evaluate strategic options to monetise Ideas 11.15 per cent stake in Indus Towers. These proceeds will strengthen the financial position of the merged entity," it added.