wordpress blog stats
Connect with us

Hi, what are you looking for?

, , ,

Idea to raise Rs 500 Cr through issue of private bonds

Idea Cellular is planning to raise Rs 500 crore by issuing unsecured redeemable bonds on a private placement basis, the company informed stock exchanges on Thursday. It plans to sell non-convertible debentures (NCDs) which offers 7.77% interest for a tenure of 5 years. The bonds will be issued in the National Stock Exchange (NSE) by 17thth January 2017 and the maturity date will be 17th January 2022.

Note that this is Idea’s third proposal to raise funds via private bonds. Last week it issued a proposal to raise Rs 1,000 crore by way of private bonds with an interest rate of 7.57%. Last month it issued unsecured redeemable NCDs worth Rs 1,500 crore with a 7.57% interest rate in the NSE.

The consecutive proposal to raise funds comes at a time when the Indian telecom industry is going through a rather competitive phase. Post launch of Jio’s free calls/data offer, Idea’s net profit fell significantly by 99.36% Year-on-Year to Rs 4.3 crore in Q2 FY17. However the company’s 4G base grew 70% quarter-on-quarter to 3.073 million 4G customers in the same quarter.

Existing operators including Idea and Airtel have stepped up by unveiling their own free 4G data offers. Idea is also stepping up its 4G coverage with its plans to upgrade all of its 17 service areas to 3G and/or 4G by March 2017. Currently it has 4G services in 10 circles and plans to deploy 4G services in 9 new service areas by March 2017 using newly acquired spectrum in this year’s auctions. On the other hand, Jio which is a 4G-only operator claimed 53 million subscribers as of December.

Idea investment on fiber and 4G

Advertisement. Scroll to continue reading.

The company also invested Rs 100 crore in Andhra Pradesh and Telangana circles last month for expanding its 4G and 3G infrastructure. Idea also upgraded its fiber network base that spans over 126,000 kilometers and claimed to have 8,160 access points across its Fiber line during Q2 FY17. It will utilize these fiber points as a backbone support to its mobile broadband services.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ