Idea Cellular, India’s third largest telecom operator informed the stock exchanges that it plans to raise Rs 1,000 crore through issuance of non-convertible debentures on private placement basis.
In a BSE filing, Idea Cellular said, “It plans to raise Rs 1,000 crore through issuance of non-convertible debentures on private placement basis.” The debentures will carry a coupon rate of 8.12 per cent per annum, it said, adding that these debentures will have tenure of seven years.
The debentures are secured against movable fixed assets excluding spectrum/telecom licences, passive telecom infrastructure and employee assets up to Rs 250 crore.
Last week, the telco had said it plans to raise Rs 500 crore through issue of Unsecured Redeemable NCDs on private placement basis. It has so far raised a total of Rs 4,000 by issuing corporate bonds in the month of January.
It is expected that Idea Cellular will used the proceeds to expand its 4G networks in the country. The telco acquired an additional 2x74.6 MHz spectrum in FDD technology on 1800 and 2100 bands, and 200 MHz spectrum in TDD technology on 2300 and 2500 bands during the spectrum sale in September 2016.
Idea Cellular recently launched its digital services starting with a set of 3 apps namely Idea Music Lounge, Idea Movie Club, and Idea Game Spark. It would launch more digital services soon to take on Reliance Jio and Airtel that offer various content and utility services to their respective subscribers.
Idea Cellular recently confirmed that it is discussing a potential with Vodafone India in an all stock-deal. The merger, if goes through, would create the country's largest telecom operator with 43 per cent revenue market share, toppling Bharti Airtel as the leader, which currently leads the market with 265.8 million subscribers.
Vodafone India has 204.6 million users and Idea Cellular 190.5 million users.