With an aim to augment its funds ahead of spectrum auction likely to be held in the latter part of 2014, Idea Cellular plans to raise funds worth Rs 7.5 billion.
Earlier, on June 5, 2014, the operator raised Rs 30 billion through a qualified institutional placement issue. In the second round of fund raising, the operator aims to raise funds by issuing shares to Malaysia?s Axiata Group Bhd, an existing investor in the company.
Idea Cellular in a filing with the Bombay Stock Exchange (BSE) has stated that the company?s Securities Allotment Committee has taken a decision to issue up to 51.8 million shares on a preferential basis to Axiata Investments 2 (India) Limited, subject to necessary regulatory approvals. Axiata Investments 2 (India) Limited is a wholly-owned subsidiary of Axiata Group. The Malaysian group holds about 19.89 per cent stake in Idea Cellular with Axiata Investments 1 (India) and Axiata Investments 2 (India) holding 14 per cent and 5.9 per cent stake, respectively.
Idea Cellular?s licences in seven circles are coming up for renewal in December 2015 and two circles by March 2016. Therefore, with an eye on acquiring spectrum, the operator plans to boost its finances ahead of the next round of auctions.
