Vodafone Idea Board Approves Share Allocation To 3 Promoter Firms To Raise Rs 4,500 Crore

The VIL okey board shared the allocation to 3 groups of promoters to raise Rs 4,500 crore

New Delhi:

Vodafone Idea on Thursday said its board had approved an allocation of 338.3 crore of equity shares at Rs 13.30 per script to three promoter group entities – Euro Pacific Securities, Prime Metals and Oriana Investments – for about Rs 4,500 crore.

Earlier this month, the telecom operator announced a Rs 14,500 crore fundraising plan, in which the organizers will inject Rs 4,500 crore.

“… the capital raising committee of the Board has, at its meeting held today … considered and approved the allocation 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 premium Rs 3.30 per equity share), aggregated to Rs 4,500 crore to the following allocation, ”Vodafone Idea said in a BSE filing.

These include the allocation 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 have approved the issue through a special resolution passed at the extraordinary general meeting held on 26 March 2022.

“… after the above allocation of equity shares, the paid -up equity share capital of the company increased to Rs 3,21,18,84,78,850 comprising 32,11,88,47,885 face equity shares. worth Rs 10 each,” he added. .

Debt -laden telecommunications operator Vodafone Idea (VIL) has, on March 3, informed that its board has approved an increase to Rs 14,500 crore, including Rs 4,500 crore from promoter entities – Vodafone and Aditya Birla Group.

A total of Rs 10,000 crore will be raised through equity or debt instruments, in one or more stages, he said.

In the regulatory filing, the company stated that the board had cleared the issue of up to 338.3 crore of Rs 10 crore equity shares each at an issue price of Rs 13.30 per equity share with an aggregate consideration of up to Rs 4,500 crore.

The fundraising comes as Indian telecom operators add more power to their weapons as the market prepares for the launch of 5G services that will lead to a new era of high -speed services and business models.

The telecommunications department is working to provide the basis for the 5G radio wave auction, though Trai regulator’s proposals on spectrum pricing and other aspects are expected soon.

Birlas owns more than 27 per cent stake in VIL, while Vodafone Plc holds more than 44 per cent.

Telecommunications service providers, particularly VILs, had the opportunity with the government last year approving a massive assistance package that included a four-year break for companies from paying statutory fees, permission to share limited airwaves, changes in the definition of revenue where levies are paid and 100 percent foreign investment through automated routes.

The government also gave telcos the option to convert the amount of interest during the moratorium period to equity.

Vodafone Idea has opted to pay an interest fee of around Rs 16,000 crore through preferred shares.


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