Vi board gives nod to raising Rs 2,458 crore through preferential issue of shares to Nokia, Ericsson
Vodafone Idea (Vi) plans to raise upto Rs 2,458 crore through a preferential issue of equity shares to its two European gear vendors Nokia and Ericsson, clearing part of their pending dues and setting stage for Vi’s 4G expansion and 5G rollout.
“The Board of Directors of Vodafone Idea Limited (“VIL” or the “Company”), today approved preferential allotment of ~166 Crore equity shares of face value of Rs. 10/- each, at an issue price of Rs. 14.80 per share, for an aggregate consideration of up to Rs. 2,458 crore, to two of its key vendors, Nokia Solutions and Networks India Private Limited (“Nokia”) and Ericsson India Private Limited (“Ericsson”),” Vi said in a statement on Thursday.
This preferential allotment price is higher by ~35% to the follow-on-public offer (FPO) price concluded by the company this April and comes with a lock-in of six months, it added.
Nokia and Ericsson will participate for up to Rs. 1,520 Crore and Rs. 938 Crore respectively, subject to approval by VIL shareholders at the EGM to be held on July 10, 2024.
“Nokia and Ericsson both have a long-term partnership with VIL, as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues,” Vi said.
“It further bolsters VIL’s capex rollout for building a top quality 4G & 5G network to contribute towards India’s digital transformation.”
Post this preferential issuance, the shareholding of Nokia and Ericsson in the company will be 1.5% and 0.9% respectively. The Promoter (ABG and
