Idea Cellular gains 1 per cent ahead of Rs 3,750 crore QIP

MUMBAI: Shares of Idea Cellular gained momentum in trade as the company is likely to raise Rs 3,750 crore by selling shares to institutions for Rs 135 to Rs 140 apiece today.

India's No. 3 mobile phone operator seeks to beef up finances ahead of what could be another bruising round of spectrum auctions later this year.

The Aditya Birla Group company's board approved a plan last August to issue shares to raise Rs 3,000 crore through a QIP. The board had also cleared a preferential issue of shares worth Rs 750 crore to Malaysia's Axiata Group Berhad. This will keep Axiata's stake in the telco unchanged at around 20 per cent.

The company’s consolidated net profit surged 91.4 per cent to Rs 589.77 crore and sales grew 15.7 per cent to Rs 6974.72 crore, Year-on-year.

The stock was at Rs 137.10, up 0.96 per cent, on the BSE. It touched a high of Rs 137.70 and a low of Rs 136.10 in trade today.