The Aditya Birla group telecom company Idea Cellular on Wednesday said that the capital raising committee of the company has approved the closure of the QIP (qualified institutional placement) and has fixed an issue price of Rs 82.5 per equity share. At the price of Rs 82.5 per equity shares, Idea Cellular has expected to garner about Rs 3,500 crore. “The capital raising committee of the company at its meeting today approved the closure of the issue for the QIP,” Idea Cellular said in an exchange filing. The capital raising committee has “determined and approved the issue price of Rs 82.50 per equity shares (including a premium of Rs 72.50 per equity share) for issuance of 42.42 crore equity shares, aggregating approximately to Rs 3,500 crore, to the eligible qualified institutional buyers in the QIP,” Idea Cellular added. The committee has also approved and adopted the placement document in connection with the QIP.
Earlier in January last month, India’s third-largest telecom company Idea Cellular presented a plan to raise up to Rs 6,750 crore which was inclusive of Rs 3,250 crore preferential allotment of equity shares to the promoter group. The board of directors of Idea Cellular approved an issuance of about 32.66 crore equity shares of face value Rs 10 at a price of Rs 99.5 on a preferential basis to the promoter group entities. Back then in January, Idea Cellular constituted a committee to evaluate potential routes for raising further capital of up to Rs 3,500 crore, which has now been raised through the QIP route.
Amid the promoter group, Birla TMT, Elaine Investments, Oriana Investments have invested Rs 3,250 crore prior to the planned merger with Vodafone India. Birla TMT, Elaine Investments, Oriana Investments are the controlling promoters in Idea Cellular. Post the QIP, the joint stake of these three promoters will jump to 47.2% from 42.4% at present. The fundraising is likely to strengthen Idea Cellular’s stance in the ongoing competition between the telecom players since after the disruptive telecom company Reliance Jio Infocomm has entered the market. Shares of Idea Cellular was trading little changed at Rs 83.7, down by 0.36% on BSE on Wednesday.