TIL Desk/Business/New Delhi/ Idea Cellular has unveiled a plan to raise up to Rs 6,750 crore which will alter the shareholding pattern of the company and have a bearing on its merger agreement with Vodafone.
The board of Idea Cellular has approved raising about Rs 3,250 crore from entities under the promoter Aditya Birla Group (ABG) and constituted a committee to evaluate potential routes for raising further capital of up to Rs 3,500 crore.
In a separate statement, Vodafone Group said that as a consequence of the change in shareholding in Idea following the capital raise, the two parties have agreed that ABG will buy a minimum of 2.5 per cent of the merged entity from Vodafone for Rs 1,960 crore.
“The Board of Directors of Idea Cellular Limited (Idea), today approved issuance of about 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,” Idea said in a statement.
The shares will be issued to entities under the Aditya Birla Group — Birla TMT Holdings Private Limited, Elaine Investments Pte Ltd (Singapore), Oriana Investments Pte Ltd (Singapore), Surya Kiran Investments Pte Ltd (Singapore) and aggregate capital infusion will be of Rs 3,250 crore.
