Idea Cellular completed the allotment of 326.6 million equity shares on a preferential basis to the promoter group entities of Aditya Birla Group.
The shares amounted to ₹32 billion (US$499 million) at an issue price of ₹99 per share. The preferential allotment of shares (PAS) increased the shareholding of the promoters to 47.2% from 42.4%. It was approved by Idea’s shareholders in an extraordinary general meeting on 30 January.
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Idea’s board of directors also approved the raising of an additional ₹35 billion through a qualified institutional placement. Idea, India’s third-largest wireless operator, will merge with the second-largest operator, Vodafone India, during the first half of 2018.
Khaitan & Co advised Aditya Birla Group from an Indian law perspective for the PAS. The Khaitan team included senior partner Haigreve Khaitan, executive director Sudhir Bassi, partner Vineet Shingal, associate partner Moin Ladha, principal associate Deepak Jodhani, senior associate Vidushi Gupta and associates Abir Sarkar and Praneetha Vasan. The firm also advised Aditya Birla Group on competition law, and securities and tax aspects of the PAS.
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