Idea Cellular raises Rs 3K cr via QIP on strong investor interest

Press Trust of India Posted online: Thursday, Jun 12, 2014 at 0000 hrs
New Delhi : Country's third largest telecom Idea Cellular today said it has raised Rs 3,000 crore through qualified institutions placement (QIP) which witnessed strong interest from both foreign and domestic investors.

Besides, the company will also raise Rs 750 crore through private placement of 5.18 crore shares to its Malayasia-based existing shareholder Axiata.

The company in a statement announced "the successful closure of its qualified institutions placement and has issued and allotted 22.39 crore equity shares of face value of Rs 10 each to qualified institutional buyers, at an issue price of Rs 134 per equity share (including a premium of Rs 124 per equity share), aggregating to approximately Rs 3,000 crore."

Idea said the overall allocation to foreign investors is approximately 62 per cent of the issue and to domestic investors is approximately 38 per cent of the issue, resulting in diversified representation from a high quality global investor base.

DSP Merrill Lynch, Citigroup Global Markets India, Morgan Stanley India and Standard Chartered Securities (India) acted as global co-ordinators and book running lead managers. Axis Capital acted as book running lead manager to the issue.

"The company is proposing to undertake a private placement of 5.18 crore equity shares at Rs 144.68 per equity share aggregating to Rs 750 crore to a subsidiary of Axiata Group Berhad of Malayasia, an existing key shareholder of company, subject to shareholders’ and other necessary approvals," the statement said.

Shares of the company closed at 141.20 apiece, down 1.67 per cent on the BSE today.

The company is raising funds as it prepares a war-chest for the spectrum auctions later this year. Nine circles in which Idea Cellular holds spectrum in the premium 900 MHz band are coming up for renewal between December 2015 and April 2016.

The company plans to invest up to Rs 3,500 crore in the current financial year to build networks and launch 3G services in Delhi by next year.

Its gross revenue grew by 17.3 per cent in FY 2014, almost double the wireless industry's growth rate.