Shares of Aditya Birla group’s telecom company Idea Cellular gained nearly 14 percent on Friday after the company presented a plan to raise up to Rs 6,750 crore on Thursday which is inclusive of Rs 3,250 crore preferential allotment of equity shares. Idea Cellular on Thursday said that group is mulling 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 directors of Idea Cellular approved an issuance of 32.66 crore equity shares of face value Rs 10 at a price of Rs 99.5 on a preferential basis to the promoter group entities and constituted a committee to evaluate potential routes for raising further capital of up to Rs 3,500 crore. Following the development, the stock of Idea Cellular jumped as much as 13.73 percent to the day’s high of Rs 118.9 on NSE. Earlier yesterday, Idea Cellular shares surged 3 percent after the board of directors approved the plan to raise Rs 3,250 crore by selling shares on a preferential basis.

Following a two-day surge in the share prices of Idea Cellular, the market capitalization of the company has moved to Rs 42,568.49 crore from Rs 36,994.90 as on Wednesday. The trading volumes in the shares of Idea Cellular soared very quickly, as at 10:25 am, more than 4.2 crore shares exchanged hands on both NSE and BSE with about 3.8 crore shares on NSE alone. The board of directors of Idea Cellular approved an issuance of 32.66 crore equity shares on a preferential basis to the promoter group entities Birla TMT Holdings Pvt Ltd, Elaine Investments Pte Ltd, Oriana Investments Pte Ltd, Surya Kiran Investments Pte Ltd. The total money mobilised through the preferential allotment would be Rs 3,250 crore.

“The Aditya Birla Group remains committed towards the telecom business. The group is in the process of creating a large digital infrastructure and to contribute significantly towards the fulfilment of the ‘Digital India’ vision of the Hon’ble Prime Minister. At a time when the telecom industry is going through a challenging environment, this equity infusion by the group in Idea is another step towards reinforcing the group’s commitment,” Idea Cellular said in an exchange filing quoting Kumar Mangalam Birla, Chairman. The equity issue is subject to shareholders and other regulatory approvals. The extraordinary general meeting of shareholders is to be convened on 30 January 2018. The issue is expected to complete by early February 2018 post which the shareholding pattern of the promoter group in Idea Cellular will increase to 47.2 percent from existing level of 42.4 percent.

Meanwhile, Sensex and Nifty opened higher on Friday as most of the Asian shares ticked up to record highs in the early trade following the lifetime high closing on Wall Street overnight. The Dow Jones Industrial Average breached the psychological 25,000 mark for the first time. BSE Sensex gained 51.63 points to begin at 34,021.27 and NSE Nifty added 29.45 points to open at 10,534.25. Shares of Birla group telecom company Idea Cellular extended the gains on the back of fundraising plans. Within minutes of opening up, the benchmark indices Sensex and Nifty moved ahead in quick successions nearing their respective record highs. Sensex jumped 205.57 points to the record high of 34,175.21 and NSE Nifty added 58 points to mark a high of 10,562.8 for the first time. – Financial Express 


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