🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Vodafone Idea to make preferential issue of shares to Aditya Birla Group entity for Rs 2,075 crore

Published 07-04-2024, 02:01 am
© Reuters.  Vodafone Idea to make preferential issue of shares to Aditya Birla Group entity for Rs 2,075 crore

New Delhi, April 6 (IANS) The board of directors of Vodafone Idea (NS:VODA) on Saturday approved a preferential issue of shares to an Aditya Birla Group entity to the tune of Rs 2,075 crores.

The board approved the 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.

The relevant date, in terms of the provision of ICDR Regulations for determining the floor price of the Preferential Issue, is April 8.

The Board also approved an increase in the authorised share capital of the Company from the 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 Board also approved the convening of an extraordinary general meeting of the Company on Wednesday, 8th May, 2024, to approve the above matters.

Earlier in February, the Board of Directors of Vodafone Idea approved a fundraise of up to Rs 20,000 crores via a combination of equity and or equity-linked instruments.

The company had said that the promoters would also participate in the proposed equity raise, as committed earlier.

In addition, the company remains actively engaged with its lenders for tying up the debt funding, which will follow the equity fundraise.

Through a combination of equity and debt, the Company plans to raise around Rs 45,000 Crores. The Company’s bank debt currently stands at less than Rs 4,500 crores. The equity and debt fundraising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.