Idea Cellular raises Rs 3,500 crore via QIP
On Friday, the giant mobile operator, Idea Cellular has closed a Qualified Institutions Placement. It made an announcement that says, it is successfully closing QIP to raise Rs 3,500 crore. Recently, the company has issued and allotted about 42.42 crore equity shares to qualified institutional buyers. The issue price of the shares was Rs 82.50 that included the premium of Rs 72.50 per share. On valuation, it is amounting to approximately Rs 3,500 crore.
The company stated that the issue witnessed interest from a global investor base. The allocation of issue is approximately 56 per cent to Indian investor and approximately 44 per cent to foreign investors.
Citigroup Global Markets India played the role of global co-coordinators. The company also stated that Citigroup Global Markets book running lead managers to the issue.
Along with recent infusion of Rs 3,250 crore by Idea’s promoter, this equity raise of Rs 3,500 crore. The debt of the company will be reduced by Promoter group by approximately Rs 6,750 crore according to the company.
The company went on saying that recently, the Idea Cellular has also announced the sale of Idea’s and Vodafone India’s standalone towers to ATC Telecom Infrastructure. ATC Telecom Infrastructure is a subsidiary of American Tower Corporation that has a total enterprise value of Rs 7,850 crore.
The company remarked that further, it will continue to evaluate strategic options to monetise Idea’s 11.15 per cent stake in Indus Towers.
The company will get strengthened up due to such proceeds. This will make the financial position of the merged entity stronger.