Idea Cellular, which is planning to launch its IPO, is expected to make a pre-IPO placement of shares to promoters, employees of AV Birla Group companies and high net worth individuals.

Idea Cellular, which is planning to launch its IPO, is expected to make a pre-IPO placement of shares to promoters, employees of AV Birla Group companies and high net worth individuals. The private placement is estimated to be worth about Rs 3.75 billion or 15 per cent of the new equity to be issued for raising funds. The proceeds from the IPO would be used for expanding services in the company’s existing circles, rolling out a new network in Mumbai, starting NLD operations and redeeming its preferential shares. The company has already filed its draft red herring prospectus with the Securities and Exchange Board of India.