Idea Cellular's Rs3,000 cr QIP offer oversubscribed 3 times

Idea Cellular Ltd's Rs3,000 crore share sale to institutional investors, launched on Thursday, received a demand nearly three times the number of shares on offer, according to several reports today.

The issue is priced at Rs134 per share. Idea had set an indicative price band of 131-136.35 rupees for the sale, according to a termsheet seen by Reuters.

The country's third largest wireless services operator had opened the QIP (qualified institutional placement) as it raises a war-chest for the spectrum auctions due later this year.

Nine circles of Idea Cellular, where it holds spectrum in the premium 900 MHz band, are coming up for renewal between December 2015 and April 2016.

The Telecom Regulatory Authority of India had recommended conducting spectrum auctions at least 18 months prior to expiry of licences, a suggestion which was accepted by the Telecom Commission in 2012.

Announcing the fourth quarter results in April-end, Idea Cellular chief executive Himanshu Kapania had said the company board approved raising Rs 3,000 crore through QIP route over the next 12 months.

The company will be investing up to Rs 3,500 crore in the current fiscal to build network and launch 3G services in Delhi by next year.

Idea has been steadily increasing its market share. Last year, it overtook Reliance Communications to become the third largest telco in India.

Its gross revenue grew by 17.3 per cent in FY 2014, nearly double the wireless industry growth rate.