Idea Cellular to raise Rs 3,750 crore via QIP issue

In a bid to beef up finances ahead of what could be another bruising round of spectrum auctions later this year, Idea Cellular is all set to raise Rs 3,750 crore by selling its shares to institutions for Rs 135 to Rs 140 apiece. Moreover, the company had been conducting road-shows overseas in places such as Kuala Lumpur and Singapore to gauge investor interest. It has appointed Bank of America Merrill Lynch, Morgan Stanley, JP Morgan, Citi Bank and Axis Capital to manage the issue. The company’s board approved a plan in August 2013 to issue shares to raise Rs 3,000 crore through a QIP. The board had also cleared a preferential issue of shares worth Rs 750 crore to Malaysia's Axiata Group Berhad. Idea Cellular, an AV Birla group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, it is present in all 22 telecom circles.