Wireless carrier Idea Cellular on Wednesday launched a share sale to institutional investors to raise up to 35 billion rupees ($546 million) ahead of its merger with Vodafone&#39;s Indian business.

Idea, part of the metals-to-financials Aditya Birla conglomerate, intends to use the funds to reduce debt including loans for airwave purchases, it said in a regulatory filing.

Last month Idea announced plans to raise a total 67.5 billion rupees ahead of proposed merger, which the two sides expect to close during the first half of this year.

Idea said that the share sale launched on Wednesday has a floor price of 86.84 rupees per share, with a potential discount of up to 5 percent. The shares closed at 84.80 rupees on the National Stock Exchange.

Bank of America Merrill Lynch and Citigroup are managing the sale.

 
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The wireless carrier on Wednesday launched a share sale to institutional investors ahead of its merger with Vodafone's Indian business

Wireless carrier Idea Cellular on Wednesday launched a share sale to institutional investors to raise up to 35 billion rupees ($546 million) ahead of its merger with Vodafone's Indian business. Idea, part of the metals-to-financials Aditya Birla conglomerate, intends to use the funds to reduce debt including loans for airwave purchases, it said in a regulatory filing. Last month Idea announced plans to raise a total 67.5 billion rupees ahead of proposed merger, which the two sides expect to close during the first half of this year. Idea said that the share sale launched on Wednesday has a floor price of 86.84 rupees per share, with a potential discount of up to 5 percent. The shares closed at 84.80 rupees on the National Stock Exchange. Bank of America Merrill Lynch and Citigroup are managing the sale.

Idea Cellular launches up to $546 million share sale

Idea Cellular, India&#39;s No 3. mobile phone carrier, on Tuesday strongly denied a report that it was in exploratory talks about a merger with larger rival Vodafone India and termed the news &quot;baseless and absolutely false.&quot;&nbsp; 
 
A spokeswoman for Idea&#39;s parent conglomerate, the Aditya Birla Group, said in an email that the company had &quot;no such intent&quot; and that the report by CNBC TV18 was &quot;absolutely untrue and preposterous.&quot; &nbsp;Idea&#39;s closed 6.9 percent higher on Tuesday after the TV channel said the two sides were in talks, citing unnamed sources. 
 
Vodafone India, India&#39;s No. 2 operator by market share and the local arm of Britain&#39;s Vodafone Group Plc, &nbsp;has declined to comment on the report. 
 
&quot;Both of them are struggling with their data revenue market share and ahead of a big competitive change in the industry they might want to get bigger,&quot; IDFC securities analyst Abhishek Gupta said of Idea and Vodafone India. 
 
Any such deal would also face tough regulatory scrutiny and analysts say approvals would be unlikely, as the companies would breach the 50 percent revenue market share limit in many regions of the country if they did try to merge. 
 
&quot;It&#39;s very unlikely,&quot; PhillipCapital (India) analyst Naveen Kulkarni said, citing the regulatory hurdles. 
 
&quot;I&#39;m doubtful whether this can go through but there could be some other form of merger, such as spectrum-sharing deals,&quot; he added. 
 
Industrialist and India&#39;s richest man Mukesh Ambani&#39;s telecom venture, Reliance Jio, is set to give them competition once it launches its commercial operations in the coming months. 
 
India is the world&#39;s second-biggest mobile phone market by subscriptions, behind China, but high competition in the crowded market has kept profits under pressure.

(Reuters) 
 
 
 
 
 
 
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A spokeswoman for Idea's parent conglomerate , the Aditya Birla Group, called the CNBC TV18 reports 'absolutely untrue and preposterous'

Idea Cellular, India's No 3. mobile phone carrier, on Tuesday strongly denied a report that it was in exploratory talks about a merger with larger rival Vodafone India and termed the news "baseless and absolutely false." A spokeswoman for Idea's parent conglomerate, the Aditya Birla Group, said in an email that the company had "no such intent" and that the report by CNBC TV18 was "absolutely untrue and preposterous." Idea's closed 6.9 percent higher on Tuesday after the TV channel said the two sides were in talks, citing unnamed sources. Vodafone India, India's No. 2 operator by market share and the local arm of Britain's Vodafone Group Plc, has declined to comment on the report. "Both of them are struggling with their data revenue market share and ahead of a big competitive change in the industry they might want to get bigger," IDFC securities analyst Abhishek Gupta said of Idea and Vodafone India. Any such deal would also face tough regulatory scrutiny and analysts say approvals would be unlikely, as the companies would breach the 50 percent revenue market share limit in many regions of the country if they did try to merge. "It's very unlikely," PhillipCapital (India) analyst Naveen Kulkarni said, citing the regulatory hurdles. "I'm doubtful whether this can go through but there could be some other form of merger, such as spectrum-sharing deals," he added. Industrialist and India's richest man Mukesh Ambani's telecom venture, Reliance Jio, is set to give them competition once it launches its commercial operations in the coming months. India is the world's second-biggest mobile phone market by subscriptions, behind China, but high competition in the crowded market has kept profits under pressure. (Reuters)

Idea Cellular says reports of merger with Vodafone 'baseless'

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Idea Cellular launches up to $546 million share sale

Idea Cellular says reports of merger with Vodafone 'baseless'