Idea to raise Rs. 3,000-3,750 crore through qualified institutional placement issue

idea QIP ISSUE

Idea Cellular, India’s third largest wireless services operator, plans to raise Rs. 3,000- 3,750 crore this week by selling shares to institutional investors, bankers familiar with the development said. The qualified institutional placement (QIP) issue may open on Thursday, they said.

When contacted, an Idea Cellular spokesperson declined to comment. Announcing the fourth quarter results, Idea Chief Executive Himanshu Kapania had said the company board had approved raising Rs 3,000 crore through QIP route over the next 12 months. The company will be investing 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 had been increasing its market share. Last year, it overtook Reliance Communications to become the third largest telco in India. Its gross revenue grew by 17.3 percent in FY 2014, nearly double the wireless industry growth rate. ”Despite higher network expansion and inflationary pressures, FY 2014 saw an annual EBITDA growth of 37.5 percent, making Idea, the best performer among all the Indian telecom operators”, the company had said.