Shares of Idea Cellular closed 11% higher at Rs. 115.The company 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.
Kumar Mangalam Birla, Chairman, Idea Cellular Limited said: “The Aditya Birla Group remains committed towards the telecom business. The group is in the process of creating a large digital infrastructure and to contribute significantly towards fulfilment of the ‘Digital India’ vision of the Hon’ble Prime Minister. At a time when the telecom industry is going through a challenging environment, this equity infusion by the Group in Idea is another step towards reinforcing the group’s commitment.
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% of population). Idea is also moving fast to launch its VoLTE services during calendar year 2018.