New Delhi, Feb 21 (PTI) Idea Cellular today said its capital raising committee has approved an issue price of Rs 82.50 per share for sale of shares through a qualified institutional placement (QIP) to raise as much as Rs 3,500 crore. Also Read - Monsoon Session Day 2: Lok Sabha Passes Essential Commodities Bill to Raise Farmer Income, Boost Agri Sector | Highlights

“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. Also Read - 'Jammu And Kashmir to Reopen For Tourism Soon', Says J&K Administration

The committee “determined and approved the issue price of Rs 82.50 per equity shares (including a premium of Rs 72.50 per equity share) for issuance of 42.42 crore equity shares, aggregating to Rs 3,500 crore, to the eligible qualified institutional buyers in the QIP,” the filing said. Also Read - COVID-19: Centre Announces Guidelines For Unlock 2, Lockdown Till July 31 in Containment Zones

The panel also approved and adopted the placement document in connection with the QIP.

Birla TMT, Elaine Investments, Oriana Investments — the controlling shareholders of Idea Cellular — have recently invested Rs 3,250 crore to strengthen the company’s balance sheet prior the planned merger with Vodafone India.

Following the QIP, their stake in India’s third-largest telecom operator will rise to 47.2 per cent from 42.4 per cent now.

Last month, Idea had said that the proposed capital raising along with the sale of its standalone towers to American Tower Corp as well as sale of the firm’s 11.15 per cent stake in Indus Towers Ltd will augment long-term capital resources.

The fund raising would help the company fight intense competition being witnessed by the telecom sector following the entry of Reliance Jio.

This is published unedited from the PTI feed.