Vodafone Idea Approves Rs 2,458 Crore Preferential Allotment to Nokia and Ericsson

Vodafone Idea Limited (VIL) today announced the approval of a preferential allotment of approximately 166 crore equity shares at Rs 14.80 per share to two of its key vendors, Nokia Solutions and Networks India Private Limited (Nokia) and Ericsson India Private Limited (Ericsson), raising a total of Rs 2,458 crore.

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Preferential Allotment Details

This issue price is about 35 percent higher than the follow-on public offer (FPO) price and includes a six-month lock-in period. Nokia and Ericsson will invest Rs 1,520 crore and Rs 938 crore, respectively, pending shareholder approval at the Extraordinary General Meeting (EGM) on July 10, 2024, VIL said in a statement on Thursday.

“Nokia and Ericsson both have a long-term partnership with VIL as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues. It further bolsters VIL’s capex rollout for building a top-quality 4G and 5G network to contribute towards India’s digital transformation,” Vodafone Idea said.

Shareholding Structure Post-Allotment

Post-allotment, Nokia and Ericsson will hold 1.5 percent and 0.9 percent of VIL’s shares, respectively, while promoter shareholding (ABG and Vodafone) will be at 37.3 percent, the Government of India at 23.2 percent, and public shareholding at 37.1 percent.

Vodafone Idea said it has now raised about Rs 24,000 crore in equity, including recent conversions and issuances. Additionally, the company is in active discussions with its lenders to raise debt funding to the tune of Rs 25,000 crore.