Idea Cellular Ltd announced that the board will approved issuance of 326.6 million shares at a price of Rs. 99.50 per share on preferential basis.
The aggregrate capital infusion will be INR 32,500 mn.
The deal will increase Aditya Birla Group’s stake in Idea to 47.2% from 42.4% currently.
The company intends to raise up to INR 3,500 crore rights issue, preferential issue or a share sale to institutions.
The above equity issue is subject to shareholders and other regulatory approvals.
Appropriate disclosures will be made once the Board approves such issuance of additional capital based on the recommendations of the Committee. The proposed capital raising along with recent announcement of Idea’s standalone towers sale to ATC and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will augment the long term capital resources of the company.
Idea remains committed to participate in digital opportunities and is aggressively expanding its wireless broadband coverage and capacity, with focus on 4G services. During the first nine months of the financial year 2017-18, Idea has added over 33,500 wireless broadband sites and the current 143,500 broadband sites now, cover 620 million Indian population (52 per cent of population). Idea is also moving fast to launch its VoLTE services during calendar year 2018.