In Short:
Vodafone Idea (Vi) board approved an allotment of equity shares worth Rs 614.5 crore to Nokia and Ericsson. This is part of Vi’s plan to raise up to Rs 2,458 crore from the two vendors for expanding 4G networks and introducing 5G services. After this allotment, Vi’s paid-up capital will increase to Rs 69,699.7 crore. Nokia and Ericsson will have a 1.5% and 0.9% stake in Vi, respectively.
Vi Board Approves Allotment of Equity Shares to Nokia and Ericsson
The Vodafone Idea (Vi) board has approved the allotment of the fourth tranche of equity shares totaling Rs 614.5 crore on a preferential basis to its two European network gear vendors Nokia and Ericsson. This decision comes after Vi announced last month its plans to raise up to Rs 2,458 crore from the two vendors via a preferential issue to partly clear its dues and prepare for the expansion of its 4G networks and the rollout of 5G services in priority markets.
According to an exchange filing on Friday, the Capital Raising Committee of the board approved the fourth tranche of the allotment of 41,52,02,701 equity shares at an issue price of Rs 14.80 per share (including a premium of Rs 4.80 per share) to Nokia Solutions and Networks India (25,67,56,756 Equity Shares) and Ericsson India (15,84,45,945 Equity Shares). Post-allotment, Vi’s paid-up capital will increase to Rs 69,699.7 crore.
Nokia and Ericsson are set to participate with Rs 1,520 crore and Rs 938 crore, respectively, in the preferential issue. This move will give Nokia a 1.5% stake and Ericsson a 0.9% stake in Vi.
