Idea raises Rs 3,750 crore from QIP, preferential issue

Country's third largest telco Idea Cellular today said it has raised total Rs 3,750 crore from its qualified institutional placement offering and preferential issue to existing shareholder Axiata as the firm creates a war chest for the spectrum auctions later this year.
Idea in separate filings to the BSE said the securities allotment committee of the board of directors has approved issuance of up to 5.18 crore shares at a price of Rs 144.68 per equity share worth Rs 750 crore to Axiata Investments 2 (India) Limited. Besides, it allotted 22.38 crore shares to eligible QIBs at a price of Rs 134 per equity share.

"...Has issued and allotted 223,880,597 equity shares of face value of Rs 10 each to eligible QIBs at a price of Rs 134 per equity share, including a premium of Rs 124 per equity share, aggregating approximately to Rs 30,000 million under the SEBI regulations and Section 42 of the Companies Act, 2013 and the rules made thereunder," the filing said.
The filing added that post-allotment, the paid-up equity share capital of the company stands increased to Rs 35,439,445,020 comprising of 3,543,944,502 equity shares of Rs 10 each.
In a separate filing, Idea said the securities allotment committee of the board, at its meeting held yesterday "approved making of issuance of upto 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)."

Shares of the company closed 1.14 per cent down at Rs 143.60 on the BSE whose benchmark Sensex fell 0.43 per cent.

The company is raising funds for upcoming spectrum auctions. 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.
The Telecom Regulatory Authority of India had recommended conducting spectrum auctions at least 18 months prior to the expiry of licences, a suggestion that was accepted by the Telecom Commission in 2012. The Commission is the highest decision-making body of the Department of Telecom.

At the end of April, Idea Cellular Chief Executive Officer Himanshu Kapania said the company board approved raising Rs 3,000 crore from institutional investors over the next 12 months.
The company plans to invest up to Rs 3,500 crore in the current financial year to build networks and launch 3G services in Delhi by next year.
Its gross revenue grew by 17.3 per cent in FY 2014, almost double the wireless industry's growth rate.