Idea cellular plans Rs. 3,250 crore capital infusion

Idea Cellular, India’s third largest telecom operator, on Thursday approved a Rs. 3,250 crore fundraising proposal ahead of its merger with Vodafone. 

The board members of the company have approved issuance of 32.66 crore equity shares of the company to its promoter Aditya Birla Group at a price of Rs. 99.50 each. The company also formed a committee to evaluate potential routes for raising a capital of Rs. 3,500 crore. 

The issue of shares to the promoter is expected to complete in the next two months post which promoter shareholding will increase from present 42.4 per cent to 47.2 per cent. 

The merger of Idea and Vodafone is expected to be completed in the first half of 2018. Idea is also expected to launch its VoLTE services during the calendar year 2018.
 
Shares of Idea Cellular gained Rs. 1.85 or 1.80 per cent on Thursday and closed at Rs. 104.55 per share on NSE. The scrip opened at Rs. 103.45 and touched a high and low of Rs. 105.60 and Rs. 101.80, respectively on NSE. The stock attracted a traded volume of 1,24,97,709 shares on NSE.