Birla’s Idea plans to raise $1bn as founders boost holding

Bloomberg

Billionaire Kumar Mangalam Birla’s Idea Cellular Ltd. plans to raise more than $1 billion to strengthen its war chest as competition in the world’s second-largest telecom market
intensifies.
The company, which is poised to merge with Vodafone Group Plc’s India unit to form the nation’s biggest wireless carrier, will raise $513 million by selling shares to its founders, according to exchange filings. It has named a panel to consider raising an additional 35 billion rupees of capital through various routes, including an institutional placement, Idea said.
India’s mobile operators have seen revenue plummet and debt soar amid a price war that intensified after Mukesh Ambani, the country’s richest man, stormed into the market in 2016 offering free calls and data with Reliance Jio Infocomm Ltd. That’s forced consolidation as profit dropped at the biggest carriers, while the smaller ones were pushed out of business. “At a time when the telecom industry is going through a challenging environment, this equity infusion by the group in Idea is another step towards reinforcing the group’s commitment,” Idea Chairman Birla said.