Idea announces closure of QIP, raises Rs 3,500 crore

Idea Cellular on Friday announced the closure of its qualified institutional placement (QIP). The company has issued and allotted approximately 42.42 crore equity shares at an issue price of Rs 82.50 per share and raised about Rs 3,500 crore. The issue allocation is approximately 56% and 44% to Indian and foreign investors, respectively, a press release from Idea said. DSP Merrill Lynch Ltd and Citigroup Global Markets India were the global co-ordinators and book running lead managers to the issue. The company said that the Rs 3,500 crore raised through the QIP, along with a recent infusion of Rs 3,250 crore by Idea’s promoter and promoter group, will reduce the company’s net debt by approximately Rs 6,750 crore. In November 2017, Idea and Vodafone had agreed to sell their respective stand-alone tower businesses in India to ATC Telecom Infrastructure (American Tower) for an aggregate enterprise value of Rs 7,850 crore.

“Further, we continue to evaluate strategic options to monetize Idea’s 11.15% stake in Indus Towers. These proceeds will strengthen the financial position of the merged entity,” the company stated in the release. In 2017 43 companies raised `56,152.08 crore through the QIP route. QIP is a capital-raising tool wherein a listed company can issue equity shares, wholly and partly convertible debentures, or any security other than warrants that are convertible into equity shares. But unlike in an IPO or an FPO, only institutions or qualified institutional buyers can participate.

IDEA Cellular Limited