Idea to seek nod for fundraise, new name
Idea Cellular will hold an extraordinary general meeting on 26 June to seek shareholders’ nod to raise funds of up to Rs15,000 crore and change the name of the company to Vodafone Idea
New Delhi: Idea Cellular Ltd, which is in the final stages of completing its proposed merger with Vodafone India Ltd, will hold an extraordinary general meeting on 26 June to seek shareholders’ nod to raise funds of up to Rs15,000 crore and change the name of the company to Vodafone Idea Ltd.
The name change would be subject to the approval of the Union government or any other authority as may be necessary, Idea Cellular said in a filing to the exchanges on Friday.
The company has also sought approval to raise up to Rs15,000 crore on a private placement basis by way of non-convertible securities, including but not limited to non-convertible debentures, in one or more tranches, Idea Cellular said.
The exchange filing did not, however, have details of what the funds would be used for.
The two companies are yet to receive the final approval from the department of telecommunications for the merger. They have already received approval from the National Company Law Tribunal, the Competition Commission of India and the Securities and Exchange Board of India.
The Vodafone-Idea merger, aimed at dominating a market that Mukesh Ambani’s Reliance Jio Infocomm Ltd had disrupted with free voice calls and low data tariffs, will create the world’s second largest and India’s largest telecom firm in terms of subscribers, overtaking Bharti Airtel Ltd.
In March, Vodafone India and Idea Cellular outlined the key leadership team which will head the merged entity. Aditya Birla Group chairman Kumar Mangalam Birla will be the non-executive chairman of the Vodafone-Idea combine. Balesh Sharma, who is currently the chief operating officer of Vodafone India, has been named the chief executive officer of the merged entity.
Akshaya Moondra, currently chief financial officer at Idea Cellular, will be the CFO and Ambrish Jain, currently deputy managing director at Idea, will take over as COO of the merged entity.
Both Moondra and Jain will report to Balesh Sharma, who will be responsible for the combined business’s strategy and its execution and for driving integration.
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