In Short:
Vodafone Idea (Vi) in Kolkata has approved issuing equity shares to Nokia and Ericsson, aggregating Rs 615 crore, to clear pending dues. Vi’s paid-up share capital now stands at Rs 684,540,864,730. The telco plans to raise Rs 2,458 crore for 4G expansion and 5G rollout. Nokia and Ericsson will invest Rs 1,520 crore and Rs 938 crore, respectively, increasing their shareholding in Vi to 1.5% and 0.9%. Vi shares closed 3.04% lower at Rs 16.28 on BSE.
Vodafone Idea Approves Allotment of Equity Shares to Nokia and Ericsson
Vodafone Idea (Vi) has approved the first tranche of allotment of equity shares via a preferential issue amounting to Rs 615 crore to Nokia and Ericsson to clear a portion of their pending dues.
Allotment Details
The Capital Raising Committee of the board has approved the allotment of 41,52,02,701 equity shares at an issue price of Rs 14.80 per share to Nokia Solutions and Networks India Pvt Ltd (25,67,56,756 Equity Shares) and Ericsson India Pvt Ltd (15,84,45,945 Equity Shares).
Following this allotment, Vi’s paid-up share capital now stands increased to Rs 684,540,864,730, comprising 68,454,086,473 equity shares of the face value of Rs 10 each.
Plan for Fund Utilization
Vi had announced plans to raise up to Rs 2,458 crore through a preferential issue of equity shares to Nokia and Ericsson for clearing part of their pending dues and setting the stage for the telco’s 4G expansion and 5G rollout.
Nokia and Ericsson will contribute Rs 1,520 crore and Rs 938 crore respectively. Post the preferential issuance, the shareholding of Nokia and Ericsson in Vi will be 1.5% and 0.9% respectively.
Stock Performance
Vi shares closed 3.04% lower at Rs 16.28 on BSE Thursday.
