new Delhi: The board of Vodafone Idea (Vi) on Thursday approved a proposal to raise funds up to Rs 14,500 crore, including Rs 4,500 crore from promoter entities.
An amount of Rs 10,000 crore will be raised through sale of equity or through debt instruments like ADRs, GDRs and FCCBs.
In a regulatory filing, the company said the board has approved issuance of 338.3 crore equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per equity share for an aggregate consideration of up to Rs 4,500 crore.
These shares will be issued on a preferential basis to Euro Pacific Securities and Prime Metals (Vodafone Group entities and promoters of the company) and Oriana Investments (a unit of Aditya Birla Group), the filing said.
“Issuing 338 crore equity shares of face value of Rs 10 at an issue price of Rs 13.30 per equity share (including premium of Rs 3.30 per equity share), which is Rs 10,” VI said in a stock exchange filing. Euro Pacific Percentage premium over floor price of Rs 12.08 for securities and prime metals for aggregate returns of up to Rs 4,500 crore. (Vodafone Group entities and promoters of the company), and Oriana Investments (Aditya Birla Group entity that is part of the promoter group) ).
The telecom firm has also approved issuance of equity shares or securities convertible into equity shares, global depository receipts, US depository receipts in foreign currency convertible bonds, convertible debentures, warrants up to Rs 10,000 crore in one or more tranches.
The Board also approved the convening of an Extraordinary General Meeting of the Company on 26 March.
Shares of VI rose 6 per cent to Rs 11.08 on the BSE on Thursday in an otherwise slippery market ahead of the board meeting. The telecom service provider’s stock remained higher for the fourth consecutive day and gained 16 per cent during the period. The stock had hit a 52-week high of Rs 16.79 on December 10, 2021.
Bharti Airtel recently decided to acquire an additional 4.7 per cent stake in Indus Towers from Vodafone Group. The two companies signed an agreement on the condition that Vodafone would use the proceeds to invest in Vi and later clear its pending dues with Indus Towers.