Telecom major Idea Cellular said it will raise Rs 1,000 crore from the market through issuance of unsecured NCDs. The company is proposing to issue Unsecured Redeemable Non-Convertible Debentures (NCDs) amounting to Rs 1,000 crore on private placement basis, Idea Cellular said in a filing to the BSE. The NCDs are proposed to be listed on NSE for a tenure of 5 years, it added. Also Read - Reliance Jio tops 4G download speed in January while Vodafone leads in upload speed: TRAIAlso Read - Vodafone might exit Indian market over high taxes and recent court ruling
NCDs are long-term financial instruments that acknowledge a debt obligation towards the issuer. They, however, do not convert into equity shares. The deemed date of allotment is January 4, 2017 and the date of maturity is set as January 4, 2022. The coupon/interest offered is 7.77 percent per annum, it said. Last month, Idea Cellular had sent a similar notice to BSE saying it proposes to issue unsecured redeemable NCDs amounting to Rs 1,500 crore.
At the end of September 2016, the Aditya Birla Group company had 178.81 million wireless subscribers. Also, Idea s wireless broadband network is spread across 17 circles currently and by March this year, it expects its 4G services to be expanded to 20 circles from the current 11. ALSO READ: Aditya Birla Idea Payments Bank to launch in the first half of 2017