In Short:
Debt-laden telco Vodafone Idea’s shareholders agreed to raise its authorized share capital to Rs 1 lakh crore and issue equity shares to Oriana Investments. The resolutions were approved at the EGM with majority shareholder support, following a recent Rs 18,000 crore offering. VIL also sought approval to issue preferential shares worth Rs 2,075 crore to Oriana Investments, an Aditya Birla Group entity.
Vodafone Idea Shareholders Approve Proposal to Raise Authorised Share Capital
In a recent regulatory filing, it was announced that debt-ridden telco Vodafone Idea shareholders have approved a proposal to increase its authorised share capital to Rs 1 lakh crore. The company also plans to issue equity shares on a preferential basis to promoter group firm Oriana Investments.
Approval at Extraordinary General Meeting
At the extraordinary general meeting (EGM) held on May 8, all special resolutions were approved by a majority of the shareholders, with only a slight number of voters opposing them. The scrutiniser report confirmed that all resolutions mentioned in the EGM notice were passed with the requisite majority.
Details of the Proposal
Vodafone Idea sought approval from shareholders to raise the authorized share capital to Rs 1 lakh crore from Rs 75,000 crore, following a recent Rs 18,000 crore follow-on offering (FPO). Additionally, the company also requested approval to issue preferential shares worth Rs 2,075 crore to promoter group firm Oriana Investments Pte, which is an Aditya Birla Group entity. The move comes as Vodafone Idea aims to strengthen its financial position and compete with rivals in the fiercely competitive Indian telecom market. The capital raise will also provide the company with the funds to invest in network modernization and expansion. In a related development, Vodafone Idea has been closely monitoring the PNB capital raise through QIP, as it looks to create a more robust balance sheet.
