Idea Cellular in green on winning 65.2 MHz spectrum

Idea Cellular is currently trading at Rs. 133.00, up by 1.55 points or 1.18% from its previous closing of Rs. 131.45 on the BSE.

The scrip opened at Rs. 132.50 and has touched a high and low of Rs. 139.15 and Rs. 132.50 respectively. So far 4,19,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 188.35 on 15-Oct-2013 and a 52 week low of Rs. 101.10 on 08-Apr-2013.

Last one week high and low of the scrip stood at Rs. 139.55 and Rs. 125.85 respectively. The current market cap of the company is Rs. 44,255.00 crore.

The promoters holding in the company stood at 45.83%, while Institutions and Non-Institutions held 22.06% and 32.11% respectively. 

Idea Cellular, India's 3rd largest mobile operator, has won a total of 65.2 MHz of spectrum, gets the necessary impetus to expand the network in Delhi to 3G on 900 MHz, and launch 4G in 8 of its key revenue markets, at an appropriate juncture. The provisional results of the auction of 900 MHz and 1800 MHz spectrum were announced, subject to approval by the Government.

In 8 of its leadership markets covering 64% of revenues, Idea now has the ability to launch 4G services in Kerala with 10 MHz, and in Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana, and North East, using 5 MHz of contiguous 1800 MHz spectrum won in each of these service areas, besides the right to deploy the 3G services with 5 MHz on the 900 MHz band in the strategically significant metro market of Delhi.

With Delhi metro 900 MHz, Idea Cellular now has the ability to extend its 3G services to 12 circles covering nearly 79% of its gross revenues (Idea Standalone Gross Revenue is Rs 255,581 million in calendar year 2013). The Company has also acquired additional top up spectrum in 1800 MHz in Mumbai metro and Madhya Pradesh & Chhattisgarh - 2 MHz each, Maharashtra - 4 MHz, Punjab - 3 MHz, Gujarat - 1.6 MHz, Andhra Pradesh and Haryana - 1 MHz each, and Delhi - 0.6 MHz.

With this additional spectrum auction win, Idea's 6 strategic markets of Kerala, Andhra Pradesh, Maharashtra & Goa, Madhya Pradesh & Chhattisgarh, Punjab, and Haryana, representing 53% of its revenues, will seamlessly experience all three Mobility technologies - GSM, 3G, and 4G services in the coming years.

The total accepted bid value is approximately Rs 10,400 crore at Rs 160 crore/MHz, primarily for its 9 strategic service areas. This bid price will be covered within less than two years in EBITDA terms, based on the current EBITDA trends of these 9 strategic markets. After the initial payment of approx. Rs 3,100 crore, the balance amount will be paid in ten equal installments after the first two year moratorium including interest  10%.

Idea Cellular, an AV Birla group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, it is present in all 22 telecom circles.