Idea Cellular raises Rs 3,250 crore from promoter group

Idea Cellular Ltd. will raise Rs 3,250 cr, by selling shares to the Kumar Mangalam Birla-led promoter group by issuing 32.66 cr equity shares on a preferential basis at Rs 99.50 apiece to all or any of Birla TMT Holdings Pvt Ltd, Oriana Investments Singapore, Elaine Investments Singapore, Surya Kiran Investments Singapore, the company said in the exchange filing.  It also set up a panel to consider options to raise an additional Rs 3,500 crore via a preferential issue, a QIP or a rights issue.

Fresh equity funding will allow Idea Cellular to better defend its revenues and market share. The proposal appears to be driven by merger conditions, and not by instant cash crunch or any covenant breach, it added.

The Preferential issue is likely to be completed by early February. Promoter holding in Idea Cellular to increase to 47.2 percent from 42.4 percent, after the preferential issue.

Shares of Idea Cellular closed at 2.85% to Rs 105.55 in NSE on the back of this announcement.