Vodafone Idea board clears raising Rs 2075 cr from Aditya Birla Group via preferential issue
Vodafone Idea (Vi) on Saturday cleared raising Rs 2075 crore from an Aditya Birla Group entity through a preferential share issue, setting the stage for a wider fund raise critical to the revival of the cash-strapped telco.
«Issuance of upto 1,395,427,034 Equity Shares of face value of Rs. 10/- each at an issue price of Rs. 14.87 per equity share (including a premium of Rs. 4.87 per equity share), aggregating to Rs. 2,075 crores to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis...,» Vodafone Idea said in a notice to the stock exchanges on Saturday.
It added that the relevant date for determining the floor price of the preferential issue is April 8, 2024.
«The Board also approved an increase in authorised share capital of the Company from existing Rs. 75,000 crores (divided into Rs. 70,000 crore equity share capital and Rs. 5,000 crore preference share capital) to Rs. 1,00,000 crores (divided into Rs. 95,000 crore equity share capital and Rs. 5,000 crore preference share capital),» the telco 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 via equity by June end, and follow that up with around Rs25,000 crore from lenders.
The cash-strapped telco expects the corpus will help repay vendors, strengthen its 4G network and fund the launch of 5G services to help compete with bigger — and profitable — rivals Reliance Jio and
