NEW DELHI: Cash-strapped Vodafone Idea Limited (VIL) on Saturday announced a capital infusion of Rs 2,075 crore from its promoter Aditya Birla Group. The telecom service provider, in an exchange filing, said its board approved the issuance of preferential shares to the tune of Rs 2,075 crore to Oriana Investments Pte. Ltd, an entity of Aditya Birla Group.
The preferential issue will involve issuing 1,395,427,034 new 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). The relevant date for determining the floor price for this preferential issue, as per SEBI regulations, is April 8, 2024.
Vodafone Idea has also approved an increase in the company’s authorized share capital from Rs 75,000 crore to Rs 1 lakh crore. This move provides VIL with more headroom for future fundraising, if needed. The company will seek shareholders’ approval for both the preferential issue and the hike in authorised share capital on May 8, 2024. VIL, the loss-making joint venture between the UK’s Vodafone Plc and India’s Aditya Birla Group, has been struggling to raise funds for over three years now.