Providence part exits India's Idea Cellular for $207m

According to bulk trade data, the transaction entailed the sale of 125 million shares at a price of INR110.65 apiece, representing a 4.8% premium to the stock's latest valuation of around INR105.55. Morgan Stanley Asia Singapore was the chief buyer, acquiring about half of the shares sold.

Providence is understood to have doubled its initial INR18 billion investment in Idea during the past 10 years, although this return is believed to be significantly reduced in US-dollar terms due to a coinciding depreciation in the rupee. The firm bought a 15% stake in the company in 2006. This was followed about a year later by a float on the Bombay Stock Exchange.

Idea is an Aditya Birla Group-affiliated telecom supporting 2G and 3G connectivity across India as well as both domestic and international long distance services. As of the fourth quarter of the 2015 financial year, the company claimed revenue in excess of $5 billion and about an 18% market share.

Providence made a partial exit from the company in 2014, selling a 2.3% stake for INR14.1 billion via an open market transaction. This represented about 25% of the firm's interest at the time.

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• Topics
• South Asia
• Infrastructure
• Technology
• Open market
• India
• Providence Equity Partners
• TMT