Indian Rayon picks Idea Cellular stake to raise Aditya Birla Grp holding
29 Sep '05
2 min read
Viscose filament yarn (VFY) manufacturer Indian Rayon obtained 371.8 million equity shares of Idea Cellular, representing 16.45 per cent of the company's paid-up equity, for a total price of US $ 150 million, from Cingular Wireless, USA.
This mega transaction takes the Indian Rayon shareholding in Idea to 20.74 per cent, and that of the Aditya Birla group to 50.15 per cent, indicative of its strong focus in the joint venture company. Earlier this month, schemes to merge Birla Global and Indo-Gulf Fertilisers into Indian Rayon were announced, which will make the combined entity, to be renamed Aditya Birla Nuvo, a large high growth powerhouse.
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group says that mobile telephony will be one of the exciting sectors in the Indian economy in the coming decade, and Idea is most attractively positioned within the sector. He believes Idea will go from strength to strength.
Expressing great confidence in the company, Mr. Sanjeev Aga, Managing Director, Indian Rayon, commented that they and their partners aim that Idea will be known as the company that sets operational and service standards which become the benchmark for the industry.
Idea Cellular is leading GSM mobile services operator. It operates its center in 11 circles, covering approximately 45 per cent of India's population and close to 60 per cent of the market potential. A pioneer and an innovator, the company has regularly enjoyed very high ratings in customer satisfaction and brand preference, from its six million subscribers.
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