ABSTRACT:Idea was incorporated as Birla Communications Limited on March 14, 1995 and granted a certificate of commencement of business on August

11, 1995. Its name was changed to Birla AT&T Communications Limited on May 30, 1996 following the execution of a joint venture agreement dated December 5, 1995 between AT&T Corporation and Grasim Industries Limited pursuant to which the Aditya Birla Group held 51% of our Equity Share capital and AWS Group held 49% of our Equity Share capital. With effect from January 1, 2001 following its merger with Tata Cellular Limited the joint venture agreement between AT&T Corporation and Grasim Industries Limited dated December 5, 1995 was replaced by a shareholders agreement dated December 15, 2000 entered into between Grasim Industries Limited on behalf of the Aditya Birla Group, Tata Industries Limited on behalf of the Tata Group and AT&T Wireless Services Inc. on behalf of the AWS Group following which our name was changed to Birla Tata AT&T Limited on November 6, 2001. Consequent to the introduction of the Idea brand, the name was changed to Idea Cellular Limited on May 1, 2002. The AWS Group exited from the Company on September 28, 2005 by selling 371,780,740 Equity Shares of the Company, which constituted 50% of the holding of AT&T Cellular Private Limited in our equity share capital, to ABNL and by transferring the remaining 371,780,750 Equity Shares to Tata Industries Limited. The Tata Group ceased to be a shareholder of the Company on June 20, 2006 when Tata Industries Limited and Apex Investments (Mauritius) Holding Private Limited (formerly known as AT&T Cellular Private Limited) sold all their shares in the Company to the Aditya Birla Group.

Key data IDEA:52-week high/low `95 / `56 Sensex/Nifty 18197 / 5482 3-m average volume US$11.9m Market cap `312bn / US$7.1bn Shares outstanding 3304m Promoters (%) 46.0 Free float (%) 54.0 - Foreign institutions 10.1 - Domestic institutions 8.0 - Others [a] Others includes Axiata (19.1%), Providence (10%), Indian Public (2.4), NRI

Source:http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/ideacellular/IC8 http://www.moneycontrol.com/company-facts/ideacellular/history/IC8 http://en.wikipedia.org/wiki/Idea_Cellular

RESEARCH METHODOLOGY:Source of data collection

The research was conducted with the help of Secondary data collected from various sources such as websites, newspapers, etc

CONCLUSION:Idea normalized revenue growth at 18.2% in FY11. Revenue market share increased to 13.6%. Idea is one of the top 10 telecom operators globally in terms of minutes carried on the network. Overcapacity remains a critical area of concern. Idea launched 3G services on 28th March 2011; 1.55m of existing subscribers have migrated to 3G. 3G now launched in 9/11 circles where Idea has 3G spectrum; 50% of current subscribers to be covered in 11 service areas by FY12 end. Initial attraction in 3G has been strong. Data volumes (in MB) have grown 80-90% since 3G launch between Feb and May. 3G handsets price point has reduced from Rs4,500 to Rs3,000 and management expects it to reduce to Rs2,000-2,500 over the next 6-8 months. Idea Cellular: an investment profile:It is expected that business momentum will remain strong driven by flattening tariff declines, continued strong traffic growth and increased data usage post 3G rollouts. Idea is the most attractive play on the tailwinds gathering in the Indian wireless market. Re-iterate a Buy. The recent tariff hikes by telcos are supported by underlying changes in the competitive environment and sustainable. Idea is the most attractive play on strong tailwinds in Indias wireless market. Our target price implies a strong 30% upside over the next 12-month period. I re-iterate a Buy.