Vodafone Idea allots shares worth ₹2,075 cr to group entity
₹2,075 crore to Oriana Investments Pte. Ltd, an Aditya Birla Group entity that is part of the promoter group, on a preferential basis. The issue price of the shares is ₹14.87 apiece, higher than the closing price of ₹13.36 on the BSE on Friday.
The board also approved an increase in authorised share capital of the company to ₹1 trillion, split into ₹95,000 crore share capital and ₹5,000 crore preference share capital. This is up from existing ₹75,000 crores, divided into ₹70,000 crore share capital and Rs. 5,000 crore preference share capital.
An EGM to seek approval of these board resolutions will be held on 8 May, the company said in a statement to the exchanges on Saturday. The board approval comes within a week of Vodafone Idea’s shareholders approving issuance of securities of about ₹20,000 crore. Mint reported on Friday that the the third largest carrier was preparing to raise ₹20,000 crore from the markets through a follow-on public offer (FPO) likely as early as next week, for which Axis Bank, Jefferies Group and State Bank of India have been appointed as lead bankers.
The offer will be followed up by raising a larger level of debt from banks. Shareholders had in February approved a ₹45,000-crore fundraising initiative, including the ₹20,000-crore equity-based capital infusion from existing investors. Existing promoters will be involved in the equity fundraising, the company had said earlier.
Following the equity fundraise, Vodafone Idea will look to raise debt, taking the total amount of funding to up to ₹45,000 crore. It is expected to complete the fundraise by the end of June. The fundraise is crucial for its ability to begin 5G services.
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