Jan 26, 2007

Idea Cellular fixes IPO price band at Rs 65-75

Idea Cellular Ltd. has raised Rs 3.75 billion in a pre-IPO share placement, and fixed a band of Rs 65-75 per share for the February IPO, aiming to raise up to Rs 24.44 billion, it said in a statement.
The issue includes a green-shoe option worth not more than Rs 3.19 billion. The IPO will open on Feb.12 and close on Feb.15.

Funds raised will be used to begin services in Mumbai, which is dominated by Hutchison Essar Ltd. and Bharti Airtel Ltd., and to expand to more regions

Idea, controlled by the diversified Aditya Birla group, said the pre-IPO share issue was made to promoters, directors and high networth individuals, at the top end of the price band.

Aditya Birla Nuvo Ltd., the largest shareholder in Idea with a 35.7 percent stake, bought shares worth Rs 2.25 billion, the statement said. Aditya Birla Nuvo also has interests in retail, textiles, finance and fertiliser.

The IPO is managed by JM Morgan Stanley and DSP Merrill Lynch, with Citigroup and UBS as co-managers.

Source : ET


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