1. Idea plans to raise Rs 2k cr via pvt placement

Idea plans to raise Rs 2k cr via pvt placement

Idea Cellular said on Tuesday that it intends to raise up to Rs 2,000 crore by issuing unsecured redeemable non- convertible debentures (NCDs) on a private placement basis, the third such announcement by the country's third largest telecom operator so far this year.

By: | New Delhi | Published: January 25, 2017 8:32 AM

Idea Cellular said on Tuesday that it intends to raise up to Rs 2,000 crore by issuing unsecured redeemable non- convertible debentures (NCDs) on a private placement basis, the third such announcement by the country’s third largest telecom operator so far this year.
In a regulatory filing, Idea said the tenure of the securities is 5 years and will mature on January 27, 2022. The company is offering an interest rate of 8.04% per annum on the bonds, which will be listed on the NSE.
Similarly on January 12, the Aditya Birla Group firm had informed that it proposes to raise R500 crore through unsecured redeemable NCDs on a private placement basis maturing on January 17, 2022. The firm is offering an interest of 7.77% annually on the bonds and they will also be listed on the NSE. The tenure of the bonds is 5 years.
Likewise, on January 2, Idea announced its plans to raise R1,000 crore through unsecured redeemable NCDs with a tenure of 5 years on a private placement basis maturing on January 4, 2022. The firm is offering an interest of 7.77% per annum and the securities will again be listed on the NSE.
The company’s fund raising plans comes amidst an intensifying price war in the telecom market with Airtel, Vodafone and Idea locked in a bitter rivalry with the latest incumbent Reliance Jio Infocomm (RJIO).
Entering the fiercely contested Indian telecom market in Spetember last year, RJIO has offered its subscribers free unlimited voice calls and data prompting rivals to counter with unlimited voice calls and as much as 4 times more data for 3G and 4G users at dirt cheap rates.
Market analysts project that the price war is just the beginning of a long battle as RJIO aims to achieve 100 million 4G subscribers using competitive pricing in a market where the voice and data rates are among the cheapest in the world.

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