04 January 2018
Mumbai: The Board of Directors of Idea Cellular Limited (Idea) today approved issuance of 326.6 million equity shares (face value of Rs.10 per share) at a price of Rs.99.50 per share (in accordance with SEBI ICDR Regulations) on preferential basis to the Promoter group entities Birla TMT Holdings Private Limited / Elaine Investments Pte. Ltd. (Singapore) / Oriana Investments Pte. Ltd. (Singapore) / Surya Kiran Investments Pte. Ltd. (Singapore). The aggregate capital infusion will be of Rs.32,500 million.
Mr. Kumar Mangalam Birla, Chairman, Idea Cellular Limited, said, “The Aditya Birla Group remains committed towards the telecom business. The group is in the process of creating a large digital infrastructure and to contribute significantly towards fulfilment of the ‘Digital India’ vision of the Hon’ble Prime Minister. At a time when the telecom industry is going through a challenging environment, this equity infusion by the Group in Idea is another step towards reinforcing the group’s commitment.”
The above equity issue is subject to shareholders and other regulatory approvals. The Extraordinary General Meeting (EGM) of shareholders is to be convened on 30 January 2018. The issue is expected to be complete by early February 2018, post which the shareholding of promoter group in Idea will increase to 47.2 per cent from existing level of 42.4 per cent.
Separately, the Board has also constituted a committee of Board members to evaluate potential routes for raising further capital of up to Rs.35,000 million including, among others, further Preferential Issue, Qualified Institutional Placement (QIP), Rights Issue. Appropriate disclosures will be made once the Board approves such issuance of additional capital based on the recommendations of the Committee. The proposed capital raising along with recent announcement of Idea’s standalone towers sale to ATC and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will augment the long term capital resources of the company.
Idea remains committed to participate in digital opportunities and is aggressively expanding its wireless broadband coverage and capacity, with focus on 4G services. During the first nine months of the financial year 2017-18, Idea has added over 33,500 wireless broadband sites and the current 143,500 broadband sites now, cover 620 million Indian population (52 per cent of population). Idea is also moving fast to launch its VoLTE services during calendar year 2018.
About Idea Cellular Limited
Idea Cellular is the third largest wireless operator in India with a revenue market share of 16.2 per cent (Q2FY18). Idea is listed on the National Stock Exchange (NSE), and the Bombay Stock Exchange (BSE) in India. Idea is part of the Aditya Birla Group, which is one of the largest business groups in India. The Aditya Birla Group is a conglomerate with operations in more than 35 countries and has businesses in, among others, mobile telecommunications, metals and mining, cement, carbon black, textiles, garments, chemicals, fertilisers and financial services industries.
Dr. Pragnya RamGroup Executive President, Corporate Communications & CSRAditya Birla Management Corporation Private LimitedAditya Birla Centre, 1st Floor, 'C' WingS.K. Ahire Marg, WorliMumbai 400 030.
91-22-6652 5000 /2499 5000
Fax: 91-22-6652 5741/ 42
A US $43 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 120,000 employees, belonging to 42 different nationalities.
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