Money Tree

Salient features of the Issue

Issue Opens : FEBRUARY 12, 2007
Issue closes : FEBRUARY 15, 2007
Issue Size : Rs.2125/-Crore
Issue Type : Book Building
Face Value : Rs.10/-
Price Range : Rs.65/-to Rs.75/-
Tick Size : Re.1/-
Market Lot : 90
Minimum Order Qty : 90
Listing Stock Exchange: NSE, BSE

Objects of the Issue:

To expand its network and the services.
To Redeem preference shares.
To use the funds for entry fee and capital expenditure for National Long Distance (NLD) operations.

Key Strengths

There is a probability that the Cellular subscribers will increase upto 210 millions by 2008 due to its growing popularity.
ICL users have increased from 7.37 mn to 12.44 mn in the period march 2006 to december 2006.
It has 8% market share of GSM Subscribers.
Its market is expanding on account of falling handset costs and lowest tariff as compared to other operators.

Weakness

Idea Cellular can’t provide the ideal roaming services and has compulsion to share its profits with other operators.
It doesn’t provide the facility of leased-line and interconnection arrangements, and for these type of services it depends on fixed-line, (National Long Distance) NLD, (International long Distances) ILD and other mobile operators.