Vodafone Idea board gives nod to raise Rs 4,500 crore

Vodafone Idea on Thursday said its board has approved the allotment of 3.38 billion equity shares at Rs 13.30 per scrip to three promoters group entities - Euro Pacific Securities, Prime Metals and Oriana Investments - for about Rs 4,500 crore.

The telecom operator had earlier this month announced Rs 14,500 crore fundraising plans, where promoters would inject Rs 4,500 crore.

“...the capital raising committee of the Board of Directors has, at its meeting held today...considered and approved the allotment of 3,38,34,58,645 equity shares of Rs 10 each for cash at an issue price of Rs 13.30 per equity share (including a premium of Rs 3.30 per equity share), aggregating to Rs 4,500 crore to the following allottees,” Vodafone Idea said in a BSE filing.

This includes allotment of 1,96,66,35,338 equity shares to Euro Pacific Securities (promoter), 57,09,58,646 equity shares to Prime Metals (promoter), and 84,58,64,661 equity shares to Oriana Investments (promoter group).

The shareholders of the company had approved the said issuance through a special resolution passed at the extraordinary general meeting held on March 26, 2022.

“...after the above allotment of the equity shares, the paid-up equity share capital of the company stands increased to Rs 3,21,18,84,78,850 consisting of 32,11,88,47,885 equity shares of the face value of Rs 10 each,” it added.

Debt-ridden telecom operator Vodafone Idea (VIL) has on March 3 informed that its board has approved raising up to Rs 14,500 crore, including Rs 4,500 crore from promoter entities - Vodafone and Aditya Birla Group.

An amount of Rs 10,000 crore would be raised by way of equity or debt instruments, in one or more tranches, it had said. Birlas own over 27 per cent stake in VIL, while Vodafone Plc holds more than 44 per cent.