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Idea Cellular Ltd plans to raise upto Rs 2875 crore ($641.7 million) through the IPO. Of which, a 15 per cent will be raised through a pre-IPO placement, reports Reuters. That's about Rs 431 crore ($95 million) that will be raised from investors pre-IPO. The IPO is managed by JM Morgan Stanley and DSP Merrill Lynch, with Citigroup and UBS as co-managers.

So far a few private equity investors have invested in Idea Cellular.

The latest was Sequoia Capital India's investment of $42 million for a 1.5 per cent stake in the Pune-based telecom company. Providence Equity Partners picked up close to 15 per cent for $400 million, while Chrys Capital invested about $100 million for a little less than 4 per cent stake. The other investors in Idea include TI TA Associates of UK, Citigroup Venture Capital International and Maquarie Bank of Australia. All this placement has happened at a valuation of $2.8 billion.

The proposed pre-IPO placement (15% of the issue) will be done at the IPO price. This is expected to be at 20 per cent premium to the private equity placement.

Clarification: Citing an Economic Times report, I had mentioned that Sequoia Capital India has paid more than what other private equity players have paid for their stake in Idea. It turns out that it is wrong. Sequoia has indeed picked up the stake in Idea at the same valuation ($2.8 billion) as Providence and ChrysCap.

Related:

Sequoia Capital Picks Up 1.5% Stake In Idea Cellular

ChrysCapital Invests $122 Million In Idea Cellular; Providence Puts In $400 Million

GLG Partners Pick Up 8% In Idea Cellular For $213 Million: Report

Four Funds Pick Up 25% In Idea Cellular

Idea Cellular Files Draft IPO Prospectus; The Issue To Raise Rs 2,500 Crore