Idea Cellular to raise Rs750 cr by issuing shares to Axiata Group

Mumbai: Idea Cellular Ltd is planning to raise Rs.750 crore by issuing equity shares to Axiata Group Bhd of Malaysia on a preferential basis.

India’s third largest wireless service operator will issue 51 million equity shares at Rs.144.68 apiece, aggregating to approximately Rs.750 crore on a preferential basis to Axiata Investments 2 (India) Ltd, a wholly owned subsidiary of Axiata Group.

In a filing to BSE, Idea Cellular said this issuance was pursuant to the resolution passed by its board on 1 August 2013 and would be subject to necessary approvals.

Idea Cellular, a mobile-phone services provider promoted by the Aditya Birla Group, said it would convene an extraordinary general meeting of the members of the company on 10 July to approve the preferential issue.

Axiata is an existing investor in the company and holds a minority stake in it.

Last week, Idea Cellular had raised Rs.3,000 crore by selling shares to institutional investors through qualified institutional placement (QIP) at a price of Rs.134 apiece.

Investors in the QIP were mostly from Asia and the US.

The share sale through both QIP and preferential issuance to Axiata were cleared by Idea Cellular’s board on 1 August.

Idea Cellular had earlier said it would invest up to Rs.3,500 crore this fiscal year to build its network and launch third-generation (3G) telecom services in Delhi next year.

Axiata Group is one of the largest Asian telecommunication companies focused on high-growth, low-penetration emerging markets. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in Singapore.

Axiata Group holds around 19.89% stake in Idea Cellular with Axiata Investments 1 (India) Ltd owning 14% and Axiata Investments 2 owning 5.89%.

IDEA Cellular Limited