Friday, 5 January 2018

Idea Cellular up 9% on preferential issue to promoter group

Idea

Idea Cellular soared 9% to Rs 114 on BSE after the board approved fund raising of up to Rs 3,250 crore through issue of shares to promoter group companies via preferential issue at Rs 99.50 per share.

“In the first tranche, the company will raise Rs 3,250 crore by issuing around 326.6 million preferential shares at Rs 99.50 a unit to four entities of the promoter group — Birla TMT Holdings Pvt Ltd, Elaine Investments Pte Ltd (Singapore), Oriana Investments Pte Ltd (Singapore) and Surya Kiran Investments Pte Ltd (Singapore) — subject to regulatory approvals,” Idea Cellular said in a regulatory filing.

The board has also approved convening of an extraordinary general meeting of the company on Tuesday, January 30, 2018, inter alia to approve the issue of preferential issue of equity shares to the proposed allottees on a preferential basis, it added.

Additionally, the board has formed a committee that would evaluate the best option, including a further preferential issue, qualified institutions placement, rights issue etc, for raising another Rs 3,500 crore of equity.

Kumar Mangalam Birla, chairman, Idea Cellular, said: “The AB group is in the process of creating a large digital infrastructure, and to contribute significantly towards fulfilment of the Digital India vision. At a time when the telecom industry is going through a challenging environment, the equity infusion by the group in Idea is another step towards reinforcing the group’s commitment (towards telecom business).”

The trading volumes on the counter nearly doubled with a combined 27.28 million shares changed hands on the NSE and BSE till 10:02 AM.

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