Idea Cellular raises Rs.3,500 crore towards reduction of net debt

ANI | Updated: Feb 24, 2018 13:56 IST

New Delhi [India], Feb 24 (ANI): Telecom major Idea Cellular has announced the successful closure of its qualified institutions placement, raising a sum of Rs. 3,500 crore.

The company issued and allotted approximately 42.42 crore equity shares of face value of Rs. 10 each to qualified institutional buyers, at an issue price of Rs. 82.50 per equity share (including a premium of Rs. 72.50 per equity share), aggregating to approximately Rs. 3,500 crores.

This equity raise along with recent infusion of Rs. 3,250 crore by Idea's Promoter / Promoter Group will reduce Idea's net-debt by approximately Rs. 6,750 crore.

Additionally, the company announced the sale of Idea's and Vodafone India's standalone towers to ATC Telecom Infrastructure Private Limited, which is a subsidiary of American Tower Corporation for an aggregate enterprise value of Rs. 7,850 crore. Idea also continues to evaluate strategic options to monetise its 11.5 percent stake in Indus Towers. These proceeds will strengthen the financial position of the merged entity.

The issue witnessed interest from a global investor base, and allocation was approximately 56 percent and 44 percent to Indian and foreign investors respectively.

DSP Merrill Lynch Limited and Citigroup Global Markets India Private Limited acted as global co-ordinators and book running lead managers to the issue, while Luthra & Luthra Law Offices acted as the legal advisor to the company as to Indian law, and Trilegal and Sidley Austin LLP acted as legal advisors to the lead managers as to Indian law and US law, respectively. (ANI)