Idea Cellular stock gains 2%; fundraising to keep debt under check

Firm likely to lower debt to Rs 500 bn; expand its wireless broadband coverage and capacity

The Idea Cellular stock gained nearly two per cent on Thursday after the company announced that its board has approved raising Rs 32.5 billion from promoter group entities through the issuance of equity shares on a preferential basis. The issue, expected to be completed by February, will lead to an increase in the promoter stake to 47.2 per cent from 42.4 per cent. The proposed fundraising, involving the issuance of 326 million shares at Rs 99.5 a share, will lead to a dilution of 8.3 per cent.

The company is also looking at raising a further Rs 35 billion through