Vodafone Idea board approves Rs 14,500-cr fundraising plan

The board of telecom major Vodafone Idea on Thursday approved the proposal to raise funds up to Rs 14,500 crore through various means, including Rs 4,500 crore from sponsor entities.

The Board of Directors has approved the issuance of up to 3.38 billion shares at the issue price of Rs 13.30 per share, which amounts to Rs 4,500 crore, to the promoters on a basis preferential.

“Issue of up to 3.38 billion shares with a nominal value of Rs 10 each at an issue price of Rs 13.30 per share (including a premium of Rs 3.30 per share), representing a premium of 10% over the floor price of Rs 12.08 for an aggregate consideration of up to Rs 4,500 crore to Euro Pacific Securities Ltd. and Prime Metals Ltd. (Vodafone Group entities and company promoters) and Oriana Investments Pte. Ltd (entity of the Aditya Birla group forming part of the promoter group),” the telecom operator said in a stock filing.

The board also approved the issue of shares or securities convertible into shares, global certificates of deposit, foreign currency convertible bonds of US certificates of deposit, convertible debentures, warrants up to Rs 10 000 crore in one or more installments.

The board also approved the convening of an extraordinary general meeting of the company on March 26.

Shares of Vodafone Idea (Vi) jumped 6% to Rs 11.08 on BSE on Thursday in an otherwise slippery market ahead of the board meeting. The telecom service provider’s stock rose for the fourth straight day and rebounded 16% in the period. The stock had reached a 52-week high at 16.79 rupees on December 10, 2021.

Bharti Airtel recently decided to acquire an additional 4.7% stake in Indus Towers from the Vodafone group. The two companies signed an agreement on the condition that Vodafone use the proceeds to invest in Vodafone Idea (Vi) and that the latter settle its pending rights with Indus Towers.

Vodafone Idea recorded a consolidated net loss of Rs 7,230.9 crore in Q3FY22 compared to a net loss of Rs 4,532.1 crore in Q3FY21. Revenue for the quarter was Rs 9,720 crore, a 3.3% quarter-on-quarter improvement, helped by several tariff interventions including recent tariff hikes taken by all operators in November 2021.

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