Idea Shares Jump 13% As Board Approves Raising Rs 3,250 Crore From Aditya Birla Group

The Idea Cellular shares soared a day after the company board approved the raising of Rs 3,250 crore from the companies under the promoter Aditya Birla Group. The shares on Friday were trading at Rs 115.20, over 10% higher than the previous session's closing. The scrip even hit a high of Rs 118 in the intraday trading, nearly 13% higher on BSE. On Thursday, Idea Cellular, in a stock market filing, had approved the issuance of upto 32.66 crore equity shares of face value of Rs 10 each at an issue price of Rs 99.50 per equity shares (including a premium of Rs 89.50 per equity share) to Birla TMT Holdings and Elaine Investments, Oriana Investments and Surya Kiran Investments on a preferential basis for an aggregate consideration of upto Rs 3,250 crore.

The board also approved convening of an extraordinary general meeting of the company on January 30, 2018 to approve the issue of equity shares to the proposed allottees on a preferntial basis.

The shares will be issued to entities under Aditya Birla Group -- Birla TMT Holdings Private Limited, Elaine Investments Pte Ltd (Singapore), Oriana Investments Pte Ltd (Singapore), Surya Kiran Investments Pte Ltd (Singapore), the statement said.

"The aggregate capital infusion will be of Rs. 32,500 million," the statement said.

The issue is expected to complete by early February, 2018, subject to regulatory approvals, post which the shareholding of Promoter group in Idea will increase to about 47.2 per cent from existing level of around 42.4 per cent.

"The Aditya Birla Group remains committed towards the telecom business. The group is in the process of creating a large digital infrastructure...At a time when the telecom industry is going through a challenging environment, this equity infusion by the Group in Idea is another step towards reinforcing the group's commitment," Idea Cellular chairman Kumar Mangalam Birla said.

 

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