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Idea Cellular To Raise Funds From Axiata [DealCurry (India)]
[June 15, 2014]

Idea Cellular To Raise Funds From Axiata [DealCurry (India)]


(DealCurry (India) Via Acquire Media NewsEdge) Aditya Birla Group's @Idea_Cellular_L is allotting 51.8 Mn equity Shares on a preferential basis to Axiata Investments 2 (India) Limited (a wholly owned subsidiary of Axiata Group Berhad, Malaysia) raising INR 7,500 Mn. The shares are being issued at a unit price of INR 144.68.



The allotment comes so as to restore Axiata's stake to 19.9% which got diluted post the closure of recent QIP that was oversubscribed 2.5 times. Axiata Investments 1 (India) holds 14% and Axiata Investments 2 owns 5.9%.

The fund raise is meant for Idea's participation in anticipation of airwave auction next year. Nine of Idea's established service areas come up for license renewal by 2016, and its airwaves in the 900MHz band that will be auctioned are likely to be contested by Vodafone and other telecom operators.


The company would be investing up to INR 35,000 Mn by the current fiscal end, to build network and launch 3G services in Delhi by next year.

Idea has been posting good numbers with its bottomline showing an increase by 80% for the last three quarters of FY14, following a reduction in free and promotional offers.

For the last fiscal the third largest operator posted revenues worth INR 261 Bn with a PAT of INR 168 Mn.

Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. The Group's mobile subsidiaries and associates operate under the following brands - Celcom in Malaysia, XL in Indonesia, Dialog in Sri Lanka, Robi in Bangladesh, Smart in Cambodia and M1 in Singapore.

Axiata had invested in Idea in 2009 at INR 158 a piece.

Also Vodafone India, the second largest operator, was looking to a fresh infusion of capital from its British parent Vodafone Group, as the parent hiked its stake in the Indian entity.

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