"The capital raising committee of the company at its meeting today approved the closure of the issue for the QIP," Idea said in a regulatory filing.
"The Board of Directors at its meeting today has accorded final approval for issuance of equity shares for an amount not exceeding Rs 3,500 crore by way of QIP to the eligible investors...," Idea Cellular said in a BSE filing.
As a result of the preferential allotment, the aggregate shareholding of the promoter group in Idea has increased from 42.4 to 47.2 per cent.
Going by the number of subscribers and revenue market share, this merger will give birth to India’s largest mobile phone operator. The deal is expected to conclude before July 2018.
The last step is to get the DOT approval in terms of merging the licenses etc, said Sunil Sood, MD & CEO, Vodafone India
Bharti Airtel, Vodafone India and Idea Cellular are working with handset companies to make cheaper 4G smartphones costing as low as Rs 500 effectively.
Idea said it will restore interconnect services immediately after Aircel makes the payment, but did not specify the outstanding amount.
The cashbacks range from Rs 1,000-2,000 depending on the handset, and will be available from February 1.
Ashwani Gujral of ashwanigujral.com suggests buying HPCL, JSPL, State Bank of India, Chennai Petro, Idea Cellular and Tata Global Beverage.
Ashwani Gujral of ashwanigujral.com Tata Global, NIIT Tech, Sobha, Coffee Day, Titan; exit Idea Cellular
Motilal Oswal is bullish on Idea Cellular has recommended buy rating on the stock with a target price of Rs 110 in its research report dated January 24, 2018.
The BSE telecom index was trading in the green, up 0.62 percent at 1661.23 with Bharti Airtel marginally down 0.25 percent while Idea Cellular was trading in the green, up 0.18 percent at Rs 109 per share.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Reliance Industries, Torrent Power and Strides Shasun and can sell Union Bank of India.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Escorts, Indiabulls Housing and NCC while he advises holding SBI and selling Pincon Spirit and Mindtree.
There are hopes that at some point in time Jio will rationalise its tariffs but if this continues, then they would have to revise their outlook back to negative, said Nitin Soni of Fitch Ratings.
The market breadth was in favour of the advances on Friday afternoon with 1042 stocks advancing as against 653 declines while 307 remained unchanged. On the other hand, 1721 stocks advanced and 1098 stocks declined while 138 remained unchanged on the BSE.
The market breadth was in favour of the advances on Friday morning with 1175 stocks advancing as against 476 declines while 350 remained unchanged. On the other hand, 1745 stocks advanced and 763 stocks declined while 107 remained unchanged on the BSE.
Motilal Oswal is bullish on Idea Cellular has recommended buy rating on the stock with a target price of Rs 120 in its research report dated January 04, 2018.
Idea Cellular Board forms a panel to evaluate potential routes for raising further capital of up to Rs 3,500 crore.
After this preferential issue, the shareholding of promoter group in Idea will increase to around 47.2 percent from existing level of around 42.4 percent.
JM Financial recommended hold rating on Idea Cellular with a target price of Rs 110 in its research report dated January 02, 2018.
The competition forced market consolidation as nervous, smaller players bailed out and biggies joined hands to cement their position. Consolidation led to fewer players and fewer jobs.
In what could be considered a landmark year for the telecom sector in India, 2017 saw telcos consolidate like never before. By the end of the year, there were only three major players left in the market.
As per the agreement between the two telcos, Aditya Birla Group chairman Kumar Mangalam Birla will be the chairman of the merged entity, while the CFO will be a Vodafone nominee.
Bharti Airtel's mobile tower arm Bharti Infratel and Vodafone hold 42 per cent each in India's largest mobile tower firm Indus Towers and the rest is held by Idea Cellular.