Vodafone Idea (Vi) has announced a board meeting on December 9, 2024, to consider raising upto Rs 2,000 crore through equity shares and/or convertible securities on a preferential basis to co-promoter, Vodafone Group Plc. The late night exchange filing came after UK-based Vodafone Group announced plans to invest portion of its residual 3 percent Indus Tower stake sale proceeds into Vodafone Idea.
Also Read: Vodafone Group to Exit Indus Towers by Offloading Remaining 3 Percent Stake
Board Meeting Scheduled
"...that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 9 December 2024, inter-alia, to consider proposal for raising of funds not exceeding Rs. 2,000 crore, by way of issuance of equity shares and / or convertible securities on a preferential basis to one or more entities belonging to Vodafone Group (one of the Promoters of the Company)," Vi said in an exchange filing.
Stake Sale in Indus Towers
The decision follows Vodafone Group's announcement to reinvest part of its proceeds from the sale of its remaining 3 percent stake in Indus Towers, valued at over USD 300 million (Around Rs 2,540 crore). Through this transaction, the British telecom company fully exited Indus Towers—now a Bharti Airtel subsidiary—through a block deal and will initially use the funds to settle USD 101 million in secured borrowings, with a portion earmarked for Vi to clear dues to Indus Towers.
"The proceeds from the Placing will be used firstly to repay Vodafone's outstanding borrowings of USD 101 million to Vodafone's existing lenders, secured against Vodafone's Indian assets," Vodafone said in a statement on Wednesday.
Also Read: Vodafone Executives Step Down from Indus Towers Board After Bharti Airtel’s Majority Ownership
Stakeholders in Vodafone Idea
Vodafone Group entities Omega Telecom Holdings Private Limited and Usha Martin Telematics Limited are selling 79.2 million shares, representing 3 percent of Indus' stake, through an accelerated book-build offering, the British telco said.
Vi recently paid Rs 2,328.2 crore of its estimated Rs 7,076 crore outstanding to Indus Towers by the end of September, according to media reports. Vodafone Group currently owns a 22.56 percent stake in Vi, while the Aditya Birla Group holds 14.76 percent.
