Mumbai– Telecom major Idea Cellular on Monday raised Rs 3,250 crore through allotment of 32.66 crore equity shares to the Aditya Birla Group entities.
According to a statement from Idea Cellular, equity shares were allotted at an issue price of Rs 99.50 per share including premium of Rs 89.50 per share aggregating to Rs 3,250 crore.
The company said that as a result of “this preferential allotment”, the aggregate shareholding of the promoter group (Aditya Birla Group) in Idea has increased from 42.4 per cent to 47.2 per cent.
“This equity infusion reiterates the Group’s commitment towards the telecom business and confidence in its growth prospects,” Kumar Mangalam Birla, Chairman, Aditya Birla Group, was quoted as saying in the statement.
“Idea is in the process of bringing a world class 4G network to villages, towns and cities across India that will contribute to the transition of the Indian populace towards a digital lifestyle.
“With the planned fund raise combined with the recently announced sale of Idea’s towers and potential monetisation of the Indus stake, the company will be better capitalised to participate in the growth opportunities offered by the sector.”
As per the statement, the current equity infusion along with the proposed further capital raise of up to Rs 3,500 Crore, will reduce Idea’s net-debt and as a result Vodafone’s net-debt contribution to the merged entity will also be reduced by an equivalent amount.
“Additionally, the recently announced sale of Idea’s and Vodafone India’s standalone towers to American Tower Corp for an aggregate enterprise value of Rs 7,850 crore and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will further augment the long term capital resources of the company,” the statement said.
“These proceeds will significantly strengthen the balance sheet of the merged entity (Idea and Vodafone India) creating a resilient entity for the future.” (IANS)