Mumbai, June 5: Idea Cellular, the country’s third-largest wireless services operator, has opened a qualified institutional placement (QIP) issue through which it will offer equity shares worth Rs 3,000 crore.
“The securities allotment committee of the board of directors of the company, at its meeting held on June 5, 2014, has decided to open a QIP issue by way of issue of equity shares aggregating up to Rs 3,000 crore,” Idea Cellular said in a filing with the Bombay Stock Exchange.
The filing added that the committee had fixed June 5 as the “relevant date” and accordingly the floor price had been set at Rs 136.98 per share.
It said the issue was being carried out in accordance with the resolution passed by the shareholders at the annual general meeting held on September 16, 2013.
Announcing the fourth -quarter results, Idea Cellular CEO Himanshu Kapania had said the board had approved raising Rs 3,000 crore through the QIP route over the next 12 months.
The company will invest up to Rs 3,500 crore in the current fiscal to build network and launch 3G services in Delhi by next year.
Idea is one of the fastest growing mobile operators in the country. The company has been increasing its market share. Last year, it overtook Reliance Communications to become the third-largest telco in India.
Gross revenues grew 17.3 per cent in 2013-14, nearly double the wireless industry growth rate.
“Despite higher network expansion and inflationary pressures, 2013-14 saw an annual EBITDA growth of 37.5 per cent, making Idea the best performer among all the Indian telecom operators,” the company had said.
The company’s share sale to institutional investors is the biggest in the local telecommunication sector since a December 2012 initial public offer by mobile mast operator Bharti Infratel Ltd.
A strong response to the offer could help to revive a raft of other equity deals that were put off last year because of an economic downturn and sluggish corporate earnings growth.
The Idea shares today closed 0.41 per cent higher at Rs 136.35 apiece on the BSE.