Idea Cellular Seeks $506 Million From Share Sale to InstitutionsGeorge Smith Alexander
Idea Cellular Ltd., backed by Indian billionaire Kumar Mangalam Birla, is seeking to raise as much as 30 billion rupees ($506 million) from a sale of shares to institutional investors.
India’s No. 2 mobile-phone company by market value is offering shares with a floor price of 136.98 rupees each, it said in a stock-exchange filing today. The floor price represents a 0.5 percent premium to the stock’s last close.
The Mumbai-based company postponed the share sale in November as it waited for clarity on Indian spectrum licenses, a person with knowledge of the decision said at that time. The company agreed to pay about 104 billion rupees for licenses at a government auction in February.
Idea Cellular, controlled by Aditya Birla Group, announced the share sale plan in August. The company will also sell as much as 7.5 billion rupees of stock to an existing shareholder, Malaysia’s Axiata Group Bhd., according to an exchange statement at the time.