Idea Cellular shares continue to gain; up nearly 14 pc

Idea unveiled a plan to raise up to Rs 6,750 cr which will alter shareholding pattern of company.

Update: 2018-01-05 07:06 GMT
Board has already approved issuance of 32.66 crore equity shares on preferential basis to the promoter group entities for a total Rs 3,250 crore.

New Delhi: Shares of Idea Cellular rallied for a second day, soaring nearly 14 per cent on Friday after the company unveiled a plan to raise up to Rs 6,750 crore ahead of its merger with Vodafone.

The stock after a positive opening jumped 12.91 per cent to Rs 118 on BSE. At NSE, shares of the company climbed 13.72 per cent to Rs 118.90. Idea Cellular on Thursday unveiled a plan to raise up to Rs 6,750 crore which will alter the shareholding pattern of the company and have a bearing on its merger agreement with Vodafone.

The board of Idea Cellular approved raising about Rs 3,250 crore from entities under the promoter Aditya Birla Group (ABG) and constituted a committee to evaluate potential routes for raising further capital of up to Rs 3,500 crore.

In a separate statement, Vodafone Group said that as a consequence of the change in shareholding in Idea following the capital raise, the two parties have agreed that ABG will buy a minimum of 2.5 per cent of the merged entity from Vodafone for Rs 1,960 crore.   

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