Financially stressed Vodafone Idea Limited will get fund infusion worth ₹ 3,375 crore from the promoter Vodafone as part of its fund raising efforts
CorporatesEdited by Animesh Singh (with inputs from PTI)Updated: March 05, 2022 1:52 pm IST
New Delhi:
Financially stressed Vodafone Idea Limited (VIL) will get fund infusion worth ₹ 3,375 crore from the promoter Vodafone as part of the company’s proposed fund raising efforts worth ₹ 14,200 crore.
Besides Vodafone, Aditya Birla Group plans to pump in up to ₹ 1,125 crore, according to a regulatory filing on Friday.
The telecom operator will seek shareholders’ approval for raising up to ₹ 14,500 crore as well as increase its authorised share capital to ₹ 75,000 crore at its the extraordinary general meeting (EGM) to be held on March 26.
The board of Vodafone Idea Ltd (VIL) has already approved the fund raising plan, which includes ₹ 4,500 crore coming in from Aditya Birla Group and Vodafone, while the remaining amount of ₹ 10,000 crore would be mopped up by way of equity or debt instruments.
As per the EGM notice, the company will seek the consent of the shareholders to offer, issue and allot up to 338.34 crore equity shares of face value of ₹ 10 each for cash at a price of ₹ 13.30 apiece, aggregating up to ₹ 4,500 crore to the promoters.
Vodafone’s group firm Euro Pacific Securities and Prime Metals will subscribe to 253.75 crore equity shares. This will be 75 per cent of the total equity shares to be issued by the company on preferential basis, indicating a contribution of around ₹ 3,374.9 crore from the British telecom major.
Aditya Birla Group firm Oriana Investments Pte will subscribe to 84.58 crore equity shares which is about 25 per cent of the preferential shares of VIL as part of the fund raise, implying a contribution of ₹ 1,125 crore.
Currently, Birlas own more than 27 per cent stake in VIL while Vodafone Plc holds over 44 per cent shareholding in VIL.
VIL will also seek shareholders’ nod to increase the authorised share capital to ₹ 75,000 crore, divided into 7,000 crore equity shares of ₹ 10 each and 500 crore preference share of ₹ 10 each.
Telecom service providers, VIL in particular, got a shot in the arm with the government last year approving a blockbuster relief package that included a four-year break for companies from paying statutory dues, permission to share scarce airwaves and 100 per cent foreign investment through the automatic route.