Idea unveils Rs67.5 bn fundraising plan

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reuters
New Delhi, Jan 4: Idea Cellular Ltd, India’s third largest mobile services operator, Thursday unveiled a 67.5 billion-rupee ($1.1 billion) fundraising plan ahead of its merger with Vodafone’s local unit. As part of the plan, Idea will raise Rs32.5 billion by selling 326.6 million shares on a preferential basis to companies controlled by its parent Aditya Birla Group at 99.5 rupees apiece.
The deal will increase Aditya Birla Group’s stake in Idea to 47.2 per cent from 42.4 per cent currently. Idea further intends to raise up to Rs35 billion by selling shares, the company said in a statement, adding the options included a rights issue, preferential issue or a share sale to institutions.
Last March, Idea and Vodafone had announced a merger to potentially create the biggest Indian phone carrier. The deal is expected to close this year. As part of the deal, Aditya Birla Group had agreed to buy a minimum of 2.5 per cent stake of the merged entity from Vodafone to own at least 26 percent of it.  Aditya Birla and Vodafone will eventually own an equal share of the joint venture, the companies said last year. Vodafone said in a filing Thursday it expected the merger to be completed during the first half of this year. Idea shares closed 1.8 per cent higher on the NSE index, while Vodafone shares were little changed in London trading as of 1020 GMT.