New Delhi: Idea Cellular's offer for selling shares to institutional investors has received demand of about three times the number of shares put up for sale, bankers familiar with the development said.
The country's third largest wireless services operator had opened the QIP issue on Thursday through which it offered equity shares worth Rs 3,000 crore.
Shares of the company today closed 3.26 percent higher at Rs 140.80 apiece on the BSE.
The company is raising the funds as it prepares 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.
Sectoral regulator Trai 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.
Telecom Commission is the highest decision making body of Department of Telecom.
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 is one of the fastest growing mobile operators in the country. The company had been 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 percent in FY 2014, nearly double the wireless industry growth rate.
"Despite higher network expansion and inflationary pressures, FY 2014 saw an annual EBITDA growth of 37.5 percent, making Idea, the best performer among all the Indian telecom operators," the company had said.
