The Aditya Birla Group has infused ₹3,250 crore into Idea Cellular by subscribing to the preferential allotment of shares, thereby increasing the promoters’ stake to 47.2% from 42.4%.
“Idea Cellular Limited, the third-largest wireless operator in India by subscribers, [on Monday] completed the allotment of 326,633,165 equity shares to the Aditya Birla Group entities, at an issue price of ₹99.50 per share [including a premium of ₹89.50 per share] aggregating to ₹3,250 crore,” the company said in a statement. Group chairman Kumar Mangalam Birla said: “This equity infusion reiterates the Group’s commitment towards the telecom business and confidence in its growth prospects.”
The equity infusion, along with the proposed raising of additional funds of up to ₹3,500 crore, will reduce Idea’s net debt.