Mobile operator Idea Cellular, currently in merger talks with Vodafone India, today said it plans to raise Rs 500 crore through non convertible debentures on private placement basis.
"In terms of provisions of the Securities and Exchange Board of India Regulations 2015, we wish to inform you that the company is proposing to issue Unsecured Redeemable Non Convertible Debentures (NCDs) amounting to Rs 500 crore on private placement basis," Idea Cellular said in a BSE filing.
The debenture, having a tenure of five years, will carry a coupon rate of 8.03 per cent, it said.
Idea and Vodafone today confirmed they are in talks for a potential merger in India -- a move that would create the largest telecom entity to take on rivals such as Airtel and Reliance Jio.
While Bharti Airtel is currently the biggest telecom operator in India with 263.35 million mobile subscribers, Vodafone has 202.79 million users and Idea Cellular 187.68 million users.
Confirming merger talks were on, Idea Cellular earlier today said it constantly evaluates various opportunities to enhance stakeholders' value.
"As part of the exercise, the company has been in preliminary discussions with Vodafone," it had said in a separate BSE filing.
Idea emphasised that the fundamental premise of preliminary discussion is based on "equal rights" between Aditya Birla Group and Vodafone in the combined entity.
"In view of the fact that the discussion is at preliminary stage, the company is not in a position to share any further details... Further there is no certainty that the discussion with them will result in any agreement," Idea had said.
The merger, if it goes through, would create a new leader in the Indian mobile and data industry challenging rivals Bharti Airtel and Jio and hence further intensifying competition.
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