The telco sold 223.9 million shares to qualified institutional buyers, with a face value of Rs 10 each, the company said in a statement.
The company would also undertake a private placement of 51.8 million equity shares at Rs 144.68 apiece aggregating to Rs 750 crore to a subsidiary of Axiata Group Berhad of Malaysia, an existing key shareholder.
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The matter is subject to approval from shareholders as well as authorities. Axiata has a 19.9 per cent stake in Idea Cellular. The telco had taken the approval of its board to raise the money last year. The company needed to raise funds to fund the purchase of fresh spectrum for nine telecom circles where its licences will expire in 2015-16. An auction of spectrum is expected later this year.
“The issue witnessed strong interest from both foreign and Indian investors. The overall allocation to foreign investors is approximately 62 per cent of the issue,” the company said. The remaining 38 per cent was sold to domestic investors.
DSP Merrill Lynch, Citigroup Global Markets India, Morgan Stanley India and Standard Chartered Securities (India) acted as global coordinators and book running lead managers for the issue, and Axis Capital was as the book running lead manager. Amarchand & Mangaldas & Suresh A Shroff & Co was the legal advisor and AZB & Partners and Jones Day acted as legal advisors to the lead managers. Deloitte Haskins & Sells was the statutory auditors.
Shares of Idea Cellular traded 1.67 per cent down at Rs 141.2 on the BSE on Thursday.