Telecom major on June 13 said that its board has approved issuance of about 166 crore shares at ₹14.80 per share to raise funds up to ₹2,458 crore on a preferential basis.
In a regulatory filing, Vodafone Idea said that it will allot 102.7 crore shares aggregating to ₹1,520 crore to Nokia Solutions and Networks India Private Limited, and remaining 63.37 crore shares aggregating to ₹938 crore to Ericsson India Private Limited.
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“As VIL embarks on its growth journey, support from key stakeholders is critical and the agreement with Nokia and Ericsson reaffirms these vendors as long-term partners of the Company, and sets the stage for the next phase of our growth,” said Akshaya Moondra, CEO, Vodafone Idea Limited.
The board also approved convening of an extraordinary general meeting of the company on 10 July, inter-alia, to approve the above matters, VIL added.
The preferential allotment price is approximately 35 percent higher than the FPO price and includes a six-month lock-in period, the company stated.
Following this preferential issuance, Nokia and Ericsson will hold 1.5 percent and 0.9 percent of Vodafone Idea shares, respectively. The promoter group (ABG and Vodafone) will own 37.3 percent, the Government of India will hold 23.2 percent, and the remaining 37.1 percent will be public shareholding.
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With this equity issuance, VIL announced that it has raised ₹24,000 crore. Additionally, following its planned fund-raising strategy, the company is actively discussing with lenders to secure debt funding amounting to ₹25,000 crore.
In the last month, Vodafone Idea (VIL) recorded an increased loss of ₹7,675 crore in the March quarter due to higher interest and financing costs. For the fiscal year ending on March 31, 2024, VIL’s losses widened to ₹31,238.4 crore from ₹29,301.1 crore in the previous year.
