MUMBAI: Idea Cellular’s Board has approved for issuance of equity shares worth Rs 3500 crores to be raised via qualified institutional placements (QIP).
Last month, the telco unveiled plans to raise Rs 6750 crore to reduce debt and free up cash for its merger with Vodafone India and had targeted Rs 3250 crore in first tranche. The Birla-owned operator had formed a committee to look into options of raising the second tranche of Rs 3500 crore.
The Board has also authorised the committee of directors to take a decision on timing, pricing and quantum of equity shares to be issued.
“The Board of Directors of the company at its meeting held on February 14 has accorded its final approval for the issuance of equity shares , for an amount not exceeding Rs 3500 crore , by way of qualified institutional placements to the eligible investors in accordance with the SEBI (Issue of Capital and Disclosure Requirements)Regulations, 2009”, said the telco in a regulatory filing on Thursday.
Shares of Idea Cellular were trading at Rs 86.50 a piece up by 2.07 % on the BSE during the early hours on Wednesday.
On Monday, the operator said it would raise Rs 3250 crore through preferential share allotment of shares to promoter Aditya Birla Group entities.
Post the allotment shareholding of promoter group in the telecom operator went up to 47.2 per cent from the earlier 42.4 per cent.
According to the company statement, the Kumar Mangalam Birla owned operator has allotted 32.66 crore equity shares at ₹99.50 per share.
This equity infusion reiterates the group’s commitment towards the telecom business and confidence in its growth prospects. 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,” Kumar Mangalam Birla, chairman of Aditya Birla Group said in the statement on Monday.