Vodafone Idea Board Approves Rs 14,500-Crore Fundraising Plan

Vi said the board has cleared issuance of up to 338.3 crore equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per equity share for an aggregate consideration of up to Rs 4,500 cr

New Delhi: Board of Vodafone Idea (Vi) on Thursday approved proposal to raise funds up to Rs 14,500 crore, including Rs 4,500 crore from promoter entities.

An amount of Rs 10,000 crore would be raised by way of sale of equity or through debt instruments such as ADR, GDR, and FCCBs.

In a regulatory filing, the company said the board has cleared issuance of up to 338.3 crore equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per equity share for an aggregate consideration of up to Rs 4,500 crore.

These shares will be issued to Euro Pacific Securities and Prime Metals (Vodafone Group entities and promoters of the company), and Oriana Investments (an Aditya Birla Group entity) on a preferential basis, the filing said.

Vi said in a stock exchange filing, “Issuance of upto 338 crore equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per equity share (including a premium of Rs 3.30 per equity share), which is at a 10 per cent premium to the floor price of Rs 12.08 for an aggregate consideration of up to Rs 4,500 crore to Euro Pacific Securities and Prime Metals. (Vodafone Group entities and promoters of the company), and Oriana Investments (Aditya Birla Group entity forming part of the promoter group).”

The telecom firm has also approved issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants of up to Rs 10,000 crore in one or more tranches.

The board also approved convening of an extraordinary general meeting of the company on March 26.

Shares of Vi surged 6 per cent to Rs 11.08 on the BSE on Thursday in an otherwise slippery market ahead of the board meeting. The stock of telecom services provider quoted higher for the fourth straight day, and has rallied 16 per cent during the period. The stock had hit a 52-week high of Rs 16.79 on December 10, 2021.

Bharti Airtel has recently decided to acquire an additional 4.7 per cent stake in Indus Towers from Vodafone Group. The two companies signed an agreement on the condition that Vodafone will use the proceeds to invest in Vi and the latter will clear its pending dues with Indus Towers.