IDEA Cellular IPO oversubscribed 49.51 times

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Idea Cellular, an Aditya Birla Group company, which is amongst the leading mobile operators in India and currently operates in 11 Circles, has received tremendous response from investors wherein major contribution was seen from qualified institutional investors, as their portion subscribed 78.68 times; FIIs were the big contributor in the issue. They put 11.77 billion bids out of QIBs' 15.07 billion bids; total QIBs' issue size stood at 19.15 crore equity shares. 

A non-institutional investors were the next biggest bidder in the issue, as the portion subscribed 22.81 times; investors bid for 72.83 crore shares as against issue size of 3.19 crore equity shares. Retail and employees were the least contributor to the issue as their portion subscribed 3.87 times and 2.25 times, respectively. 

The issue was oversubscribed 49.51 times, as per NSE website. 

A 32.69 crore issue received 16.18 billion bids while 35.71 crore bids at cut off price.

Subscription Details

Investors	Times
Qualified institutional buyers	78.68
Non institutional investors	22.82
Retail individual investors	3.87
Employee Reservation	2.25
Total	49.51

 

 

 

 

The company entered capital market with an initial public offering, IPO, aggregating Rs 21,250 million, of equity shares of Rs 10 each.

The price band for the issue was between Rs 65 and Rs 75 per equity share. 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.

JM Morgan Stanley and DSP Merill Lynch were the book leading managers of the issue.