The company's Mumbai and Bihar circle launches were delayed due to non-allocation of spectrum, which was finally awarded in March by the government.
Idea Cellular has invested only Rs 83 crore (Rs 830 million) from its initial public offering (IPO) proceeds for the Mumbai circle rollout.
The company plans to invest the remaining amount (Rs 564 crore) for which it is seeking shareholder approvals. Idea has convened an extraordinary general meeting (EGM) on July 30 for the purpose, according to the EGM notice issued by the company.
Idea is planning to enter the Mumbai circle, which is one of the most lucrative regions in the country for quite sometime. All telecom operators, barring a few like Aircel Cellular and Spice Communications, operate in the circle.
Bihar is another circle on its agenda, which will also be launched shortly.
The company will seek permission to use around Rs 159 crore (Rs 1.59 billion) for expanding its network into newer circles in the country as well. Till March 31, 2008, the company has made investments of Rs 812 crore (Rs 8.12 billion) for expansion.
The company, the fifth largest telecom service provider in India, will also invest another Rs 81 crore (Rs 810 million) as entry fee and capital expenditure for its national long distance (NLD) operations.
Idea, according to the EGM notice, has utilised around 62 crore (Rs 620 million) for the IPO expenses and Rs 302 crore (Rs 3.02 billion) for general corporate purposes.
The Mumbai-headquartered company had raised around Rs 2,200 from its IPO in February last year. Idea has licenses to operate in 13 circles comprising states of Mumbai, Delhi, UP, Uttaranchal, Haryana, Rajasthan and Madhya Pradesh among others.
The company recently acquired B K Modi's 40.8 per cent stake in Spice Communications in an all-cash deal worth Rs 2,700 crore (Rs 27 billion), including non-compete fees. The deal values Spice at around Rs 6,800 crore (Rs 68 billion).
"We are now in the big league of telecom players in the country," Idea Chairman Kumar Mangalam Birla had said.
Expansion Mode
Idea Cellular is investing around Rs 647 crore for the rollout of operations in the Mumbai circle.
Idea Cellular has invested only Rs 83 crore from its initial public offering (IPO) proceeds for the Mumbai circle rollout.
The company will also seek permission to use around Rs 159 crore for expanding its network into newer circles.
