Idea Cellular gains 2% on board approval for fundraising up to Rs 3,250 cr
Idea Cellular shares gained nearly 2 percent intraday Thursday after the board members approved fundraising proposal.
“….approved issuance of around 32.66 crore equity shares at a price of Rs 99.50 per share on preferential basis to the promoter group entities,” the Aditya Birla Group company said in its filing.
The promoter group entities are Birla TMT Holdings Private Limited, Elaine Investments Pte (Singapore), Oriana Investments Pte (Singapore) and Surya Kiran Investments Pte (Singapore).
The aggregate capital infusion will be of Rs 3,250 crore, the company said.
This equity issue is subject to shareholders and other regulatory approvals.
Idea said the extraordinary general meeting of shareholders is to be convened on January 30, 2018.
The company is expected to complete this issue by early February 2018.
After this preferential issue, the shareholding of promoter group in Idea will increase to around 47.2 percent from existing level of around 42.4 percent.
Idea said the board has also constituted a committee of board members to evaluate potential routes for raising further capital of up to Rs 3,500 crore including further preferential issue, qualified institutional placement, rights issue.
The proposed capital raising along with recent announcement of Idea’s standalone towers sale to ATC and the potential monetisation of Idea’s 11.15 percent stake in Indus Towers, will augment long term capital resources of company, it added.
At 13:58 hours IST, the stock price was quoting at Rs 104.45, up 1.7 percent on the BSE.