Allotment would increase the reserves of the telecom company by Rs3,250cr.
The Board of Directors allotted 32.66cr shares to the promoters of Idea Cellular in a move to improve the capitalization of the indebted company. As per the allotment, Birla TMT Holdings Private Ltd will receive 2.33 lakh shares, while Elaine Investments Pte Ltd and Oriana Investments Pte Ltd would receive 16.32cr shares each. The company is also considering an additional round of capital raising through either a rights issue or a QIP to raise ~Rs3,500cr. The plan is to eventually raise Rs6,750cr in equity in total.
Idea Cellular has been facing problems of declining revenues and expanding losses due to numerous factors. The most recent negative factor affecting the company has been the sharp cut in the Interconnection Usage Charge by TRAI. This decision reduced Idea Cellular’s revenue and EBITDA by ~Rs820cr and Rs230cr respectively in Q3FY18.
Idea Cellular ended at Rs84.7, up by Rs0.85 or 1.01% from its previous closing of Rs83.85 on the BSE.The scrip opened at Rs83.9 and touched a high and low of Rs86.3 and Rs83.5 respectively. A total of 1,90,62,304 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 30249.49 crore. Last one week high and low of the scrip stood at Rs89.25 and Rs80.35 respectively.
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