Idea Cellular prices $508M QIP at Rs 134 per share

Idea Cellular, India's third-largest wireless services operator, has fixed a price of Rs 134 a share for its recently concluded qualified institutional placement (QIP) which raised Rs 3,000 crore ($507.9 million), the company said in a stock market disclosure.

The issue price is at a discount of Rs 2.98 to the floor price at Rs 136.98 a share. The company has approved the issuance of 22.38 crore equity shares which would dilute the existing equity base by around 6.3 per cent.

The issue opened on June 5, 2014 and was subscribed two-and-half times by June 9, 2014 evening.

Shares of Idea Cellular were trading at Rs 145.30 each, down 0.79 per cent on BSE in a weak Mumbai market at 11.03 AM.

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.

Post this issue, Malaysian telecom firm Axiata’s holding will come down from its current 19.9 per cent to 18.6 per cent while PE firm Providence’s stake will shrink from 9.9 per cent to around 9.3 per cent.

Last year it overtook Reliance Communications to become the third-largest telco in India.

(Edited by Joby Puthuparampil Johnson)

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