Idea Cellular Limited Raises INR 3,500 crore Through Qualified Institutions Placement

Idea Cellular, the 3^rd largest Indian wireless telecom operator^*, announced the successful closure of its qualified institutions placement. The Company has issued and allotted approximately 42.42 crore equity shares of face value of Rs. 10 each to qualified institutional buyers, at an issue price of INR 82.50 per equity share (including a premium of Rs. 72.50 per equity share), aggregating to approximately INR 3,500 crores (the “Issue”).

The Issue witnessed interest from a global investor base. The Issue allocation is approximately 56% and 44% to Indian and foreign investors respectively.

DSP Merrill Lynch Limited and Citigroup Global Markets India Private Limited acted as Global Co-ordinators and Book Running Lead Managers to the Issue (collectively, the “Lead Managers”). Luthra & Luthra Law Offices acted as the legal advisor to the Company as to Indian law, and Trilegal and Sidley Austin LLP acted as legal advisors to the Lead Managers as to Indian law and US law, respectively. M/s. S.R. Batliboi & Associates LLP, Chartered Accountants, are the statutory auditors to the Company.

This equity raise of INR 3,500 crore along with recent infusion of INR 3,250 crore by Idea’s Promoter /  Promoter Group will reduce Idea’s net-debt by approximately INR 6,750 crore. Additionally, we have recently announced the sale of Idea’s and Vodafone India’s standalone towers to ATC Telecom Infrastructure Private Limited, which is a subsidiary of American Tower Corporation for an aggregate enterprise value of INR 7,850 crore. Further, we continue to evaluate strategic options to monetize Idea’s 11.15% stake in Indus Towers. These proceeds will strengthen the financial position of the merged entity.