Idea Cellular, an Aditya Birla Group company, which is amongst the leading mobile operators in India and currently operates in 11 Circles, is entering the capital market with an initial public offering, IPO, aggregating Rs 21,250 million, of equity shares of Rs 10 each, for cash, at a premium to be decided through a 100% book-building process.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

The price band for the issue has been fixed between Rs 65 and Rs 75 per equity share. The issue opens on February 12, 2007 and closes for subscription on February 15, 2007.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
 
The company has recently concluded a pre-IPO placement of Rs 3,750 million to some of its promoters, directors and certain high net worth individuals, which includes Rs 2,250 million from Aditya Birla Nuvo and Rs 1,371 million from Birla TMT Holdings Private Limited - both existing promoters of the company. This pre-IPO placement has been made at the top end of the price band.

The company has reserved equity shares aggregating Rs 500 million for allotment to its eligible employees, with the balance of Rs 20,750 million being the net issue available for allotment to the public.

The company also proposes a green shoe option not exceeding Rs 3,187.50 million in excess of the equity shares that are included in the Issue. The issue, with the green shoe option, aggregates Rs 24,437.50 million.
 
Of the net Issue to the public in India, 60% shall be allotted to qualified institutional buyers. Within the QIB portion, 5% will be available for allocation to mutual funds only. Not less than 10% will be available for allocation to non-institutional bidders and of the balance not less than 30% will be available for allocation to retail investors, in each case, on a proportionate basis.