Sequoia picks up 1.5% in Idea for $48m

Posted on | December 8, 2006 |

ET reports that VC firm Sequoia Capital has picked up about 1.5% stake in Idea Cellular for around $48 million.

According to sources, this transaction has taken place at a higher price as compared to what was paid by other PE players and hedge funds, who recently picked up stake in Idea Cellular.

US-based Providence Equity Partner’s 15% in Idea Cellular came for about $400 million, while UK-based hedge fund group GLG Partners is believed to have picked up 5-8% equity for about $210 million. Prior to that, the Aditya Birla company had also offloaded 10% stake to TA Associates of the UK, Citigroup and India’s ChrysCapital.

Idea Cellular filed a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for its initial public offering. Idea is planning to raise about Rs 2,500 crore through its IPO, and will also go in for a pre-IPO private placement of 15% of the shares to be offered through the issue.

So who made Rs1,000cr out of Idea? ET has reasons to believe that they are a well-known serial entrepreneur and an equally renowned investment banker.

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