Vodafone Idea board raised Rs 2075 cr from Aditya Birla Group through preferential issue.
“Issuance of up to 1,395,427,034 equity shares (Rs. 10 each) at an issue price of Rs. 14.87 per share (including premium of Rs. 4.87 per equity share) for a total consideration of Rs. 2,075 crores to Oriana Investments Ltd (promoter group) (Aditya Birla group entities forming part of) on a priority basis…,” Vodafone Idea said in a notice to stock exchanges on Saturday.
It was added that the base date for determining the minimum price of priority items is April 8, 2024.
“The Board of Directors has also increased the authorized share capital of the company from existing Rs. 75,000 crores (divided between Rs. 70,000 crore equity capital and Rs. 5,000 crore preference share capital) to Rs. 1,00,000 crores (divided into Rs. 70,000 crore equity capital). “It has been approved to increase the share capital to Rs. 95,000 crore and preference share capital to Rs. 5,000 crore,” the news agency said.
The promoter’s infusion is part of Vi’s broader two-part fundraising plan totaling Rs 45,000 crore through a mix of equity and debt. It plans to raise Rs20,000 crore through equity and about Rs25,000 crore from lenders by the end of June.
The cash-strapped telco expects this corpus will help it compete with larger and more profitable rivals Reliance Jio and Bharti Airtel by repaying suppliers, strengthening its 4G network and funding the rollout of 5G services. .
