AV Birla post-IPO holding in Idea likely to be 51 per cent
11 April 2006The AV Birla group is planning to sell a 33-per cent stake in Idea to financial investors and would retain close to 66 per cent in the company. Idea may come out with an IPO later this year and the Birla stake may come down to 51 per cent after the IPO. Aditya Birla Nuvo Limited, formerly Indian Rayon, holds the AV Birla stake in Idea.
The AV Birla groups has bought out the Tata group's 48.15 per cent stake in Idea Cellular for Rs4,407 crore (See: Aditya Birla Nuvo to acquire 15 per cent additional stake in Idea Cellular). This brings to an end the acrimonious battle between the two groups in the recent months over their holdings in Idea Cellular. The Tata group would now focus on its CDMA business under Tata Teleservices.