Idea Cellular Ltd files DRHP with SEBI

New Delhi, Dec 11 (UNI) Telecom service provider, Idea Cellular Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed initial public offer of equity shares of Rs 10 each for cash.

The IPO will be offered at a premium to be decided through a 100 per cent book-building process aggregating to Rs 2,500 crore.

The company proposes to reserve equity shares amounting to Rs 50 crore for allotment to eligible employees of the company with the balance of Rs 2,450 crore to be available for allotment to public.

Of the total net issue, the company proposes to reserve 60 per cent to be allotted on a proportionate basis to qualified institutional buyers, of which five per cent will be allotted to mutual funds.

A further 10 per cent will be reserved for allotment to non-institutional buyers and the balance 30 per cent will be reserved for allotment to retail investors.

Idea Cellular, an Aditya Birla Group company proposes a green shoe option not exceeding Rs 375 crore in excess of the equity shares that are included in the issue of Rs 2,500 crore.

The company is considering a pre-IPO placement of equity shares not exceeding 15 per cent of the total issue of Rs 25,00 crore.

The net issue would be reduced to the extent of any pre-IPO placement.

UNI KR RN1905