NEW DELHI: Cash-strapped telecom operator Vodafone Idea Limited on Thursday informed that its board had approved a proposal to raise Rs 14,500 crore from its promoters and investors through equity, warrants and convertible debentures.
Of the total Rs 14,500 crore, the telco would raise Rs 4,500 crore through issuance of preferential shares to its promoters -- UK’s Vodafone Group and India’s Aditya Birla Group. An amount of Rs 10,000 crore would be raised by way of sale of equity or through a mix of ADR, GDR and FCCBs.
“Issuance of upto 3,38,34,58,645 equity shares of face value of Rs 10/- each at an issue price of Rs 13.30 per equity share (including a premium of Rs 3.30 per equity share), which is at a 10% premium to the floor price of Rs 12.08 as per SEBI (ICDR) Regulations, for an aggregate consideration of upto Rs 4,500 crores (Rupees four thousand five hundred crore), to Euro Pacific Securities Ltd. and Prime Metals Ltd. (Vodafone Group entities and promoters of the Company), and Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group) on a preferential basis...,” said the telco in an exchange filing.
The company also approved the issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants of up to Rs 10,000 crore in one or more tranches.
The board has also decided to convene an extraordinary general meeting of the operator on Saturday, March 26, 2022, to approve the fund raising moves.
Recently Bharti Airtel acquired an additional 4.7% stake in Indus Towers from Vodafone Group. The deal was signed on the condition that Vodafone will use the proceeds to invest in cash-strapped Vodafone Idea and the latter will clear its pending dues with Indus Towers.
Recently, Vodafone Idea Ltd opted to pay interest of around Rs 16,000 crore through preferential shares, which makes the government 35.8% stakeholder in the company.
It continues to lose subscribers to Airtel, Jio. In its third quarter result, VIL reported a consolidated net loss of Rs 7,230.9 crore as against a net loss of Rs 4,532.1 crore in Q3FY21.