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Providence May Sell More Than 3% Stake In Idea Cellular

The deal may see the private equity firm exit the company, people familiar with the matter said.



Customers gather around the reception area inside an Idea Cellular Ltd. mobile store in Mumbai (Photographer: Dhiraj Singh/Bloomberg)
Customers gather around the reception area inside an Idea Cellular Ltd. mobile store in Mumbai (Photographer: Dhiraj Singh/Bloomberg)

Providence Private Equity is likely to exit telecom company Idea Cellular Ltd. by selling its remaining 3.33 percent stake for an estimated amount of more than Rs 1,200 crore.

Last year, Providence had trimmed its stake and this deal would see the private equity firm exiting the company, people familiar with the development said.

The stake sale comes while Idea Cellular is engaged in discussion with rival Vodafone India for a potential merger.

The private equity firm had picked up 15 percent stake in Idea Cellular in 2006 for around Rs 1,800 crore and has been gradually offloading stake over the years.