Idea Cellular raises Rs 3,500 crore via QIP

The company has issued and allotted about 42.42 crore equity shares to qualified institutional buyers at an issue price of Rs 82.50 per equity share (including a premium of Rs 72.50 a share), amounting to about Rs 3,500 crore.

Mobile operator Idea Cellular today said it has successfully closed a Qualified Institutions Placement (QIP) to raise Rs 3,500 crore.

The company has issued and allotted about 42.42 crore equity shares to qualified institutional buyers at an issue price of Rs 82.50 per equity share (including a premium of Rs 72.50 a share), amounting to about Rs 3,500 crore.

"The issue witnessed interest from a global investor base. The issue allocation is approximately 56 per cent and 44 per cent to Indian and foreign investors respectively," the company said in a statement here.

DSP Merrill Lynch and Citigroup Global Markets India acted as global co-ordinators and book running lead managers to the issue, the statement added.

"This equity raise of Rs 3,500 crore along with recent infusion of Rs 3,250 crore by Idea’s promoter/ promoter group will reduce Idea’s net-debt by approximately Rs 6,750 crore," it added.

Also, the company has recently announced the sale of Idea’s and Vodafone India’s standalone towers to ATC Telecom Infrastructure, a subsidiary of American Tower Corporation for an total enterprise value of Rs 7,850 crore, the company said."Further, we continue to evaluate strategic options to monetise Idea’s 11.15 per cent stake in Indus Towers. These proceeds will strengthen the financial position of the merged entity," it added.

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