39 C
New Delhi
Saturday, May 25, 2024

Vodafone Idea plans to raise Rs 2075 crore through Preferential Share Issue

More from Author

In Short:

Vodafone Idea (Vi) will issue preferential shares worth Rs 2,075 crore to Aditya Birla Group entity Oriana Investments Ple Ltd as part of a Rs 20,000 crore equity raise. The move will be voted on by shareholders on April 8, 2024. The additional capital will help boost investor confidence, enable network expansion, commercial 5G deployment, and payment of statutory dues, as the telco looks to compete with rivals Reliance Jio and Bharti Airtel.


Vodafone Idea to Raise Rs 2,075 Crore through Preferential Shares

vodafone idea to raise rs 2075 crore

Vodafone Idea (Vi) has announced its plan to issue preferential shares to the Aditya Birla Group entity Oriana Investments Ple Ltd in order to raise Rs 2,075 crore. This move is part of the Rs 20,000 crore equity raise that the company’s shareholders have approved. Oriana Investments Ple Ltd will be allotted 1,395,427,034 equity shares with a face value of Rs 10 each at an issue price of Rs 14.87 per share (including a premium of Rs 4.87 per equity share).

Approval Process and Strategic Implications

The board of the telecom company is set to seek approval from shareholders on April 8, 2024, for this fund-raising initiative. The involvement of the Aditya Birla Group in providing additional capital will play a key role in boosting investor confidence. Vodafone UK, another major promoter of Vodafone Idea, has already divested its investment in the Indian telco. Additionally, the board has approved an increase in authorized share capital from Rs 75,000 crore to Rs 1,00,000 crore.

Utilization of Funds

The funds raised through this equity and debt raise, totaling Rs 45,000 crore, will be used by Vodafone Idea primarily for expanding its 4G networks and procuring 5G equipment. The company also aims to utilize the funds for meeting upcoming statutory obligations and enhancing its competitive position in the market.

Strategic Goals and Market Dynamics

With a focus on network expansion, Vodafone Idea intends to address the challenge of losing customers to rivals like Reliance Jio and Bharti Airtel due to its inferior 4G network. By strengthening its infrastructure, the telco aims to attract new subscribers and retain its existing customer base.

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article