In a new development, the board of Vodafone Idea (Vi) on Thursday has approved raising Rs 14,500 crore from its primary promoters – UK’s Vodafone Group as well as Aditya Birla Group (ABG) along with other external investors. The telecom operator is all set to raise Rs 4,500 crore which is approximately $600 million through preferential shares issued at Rs 13.30 per share to its promoters as well as related companies. Out of the said Rs 4,500 crore, Vodafone Idea will have a share of Rs 3,375 crore which is nearly $450 million, which the company will pay via the funds it raised by the recent selling of its stake in Indus Towers.
Board Approves Fund-Raising from Promoters and External Investors
The telco which is going through a financial crisis stated that the board has approved to issue 3,38,34,58,645 equity shares at Rs 13.30 each making a cumulative Rs 4,500 crore to Euro Pacific Securities Ltd and Prime Metals Ltd, as both are Vodafone Group entities as well as promoters of the company and Oriana Investments Pvt. Ltd. which is an Aditya Birla Group Entity, on a preferential basis.
Vodafone Idea Board in a statement said that the telecom operator will issue equity shares or securities convertible into Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants. This will allow warrant holders to apply for equity shares up to a cumulative amount of Rs 10,000 crore via private placement, qualified institutions placement or through any other permissible mode in one or more tranches. This statement comes in as the telco has announced another Rs 10,000 crore via equity and debt instruments.
The board also announced that it will summon an extraordinary general meeting on March 26, 2022, for the approval of raising funds. Talking about Vodafone, the company has informed that it was able to raise Rs 1420 crore by selling 63.6 million shares, or 2.4%, in Indus Towers at Rs 226.84 per share. Moreover, Vodafone is also planning to further sell 127.1 million shares, or 4.7%, in Indus to Bharti Airtel for Rs 224.5763 a share after which Vodafone would retain 567.2 million shares, or 21%, in Indus.