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.