Idea to raise Rs 6,750 crore before Vodafone merger

Read Full Story

Idea Cellular has announced that the telecom company is planning to raise Rs 3,250 and will invest another Rs 3,250 before a merger with Vodafone India Ltd. According to a statement issued by the company, “The board constituted a panel to evaluate ways to raise an additional Rs 3,500 crore. The proposed capital raising by Idea, the sale of its standalone towers to American Tower Corp and the potential sale of its 11.15 percent stake in Indus Towers Ltd will augment the firm’s long-term capital resources.” As per some experts, the fund infusion was necessitated by the fact that Idea needed to expand its product offerings and strengthen its telecom infrastructure. “At a time when the telecom industry is going through a challenging environment, this equity infusion by the group in Idea is another step towards reinforcing the group’s commitment,” Idea Cellular chairman Kumar Mangalam Birla said. As a result of the change in shareholding in Idea following the proposed capital raise, Aditya Birla Group (ABG) and Vodafone Group have agreed that ABG will buy a minimum of 2.5 percent of the merged entity from Vodafone, or such stake as required in order for ABG to ultimately own at least […]

Disclaimer: The content of this post is not created by The Better Lawyer (Better Legal Solutions Private Limited). The Better Lawyer is only a aggregator of legal updates. The content is created by the attributed author and the author is the copyright holder of the content. Further, the views expressed are not of and/or endorsed by The Better Lawyer.

Read Full Story

Posted in Business, News and tagged , .

Legal Era

The original author of this content is -