NEW DELHI: The shareholders of telecom service provider Vodafone Idea Limited (VIL) have voted in favour of its proposal to raise Rs 20,000 crore through equity and equity-linked instruments.
With the approval of shareholders, the company expects to raise funds through equity in the coming quarter. The company held an extraordinary general meeting (EGM), and its results were announced on Wednesday. Akshaya Moondra, CEO of Vodafone Idea, addressing EGM (extraordinary general meeting) on Tuesday, said the promoters’ shareholding in the company will fall to about 40% from 50% now, after the equity fundraise move. However, he also mentioned that the promoter shareholding is still at a very good level; there is no concern there. Currently, the promoters—Aditya Birla Group and Vodafone Group—collectively hold a 48.91% share of the company.
Vodafone Idea announced on February 27, 2024, that the company’s Board of Directors has approved the equity financing plan. It said the fund could be raised through convertible debentures, warrants, or other securities convertible into equity shares, global depository receipts, American depository receipts, or foreign currency convertible bonds.
The company held the EGM on April 2 to approve the same through an audio-visual medium where shareholders could participate to pass the company’s resolutions. The company is planning to raise Rs 45,000 crore through a combination of equity and debt.
Recently, the company also sold equity shares to its vendor, American Tower Company (ATC), through the conversion of optionally convertible debentures (OCDs) worth Rs 1,440 crore. ATC now holds a 2.87% stake in Vodafone Idea.
Meanwhile, the telco’s net loss for the October-December quarter narrowed to Rs 6,986 crore from Rs 8,738 crore in the previous quarter. Revenue from operations rose 0.5% year-on-year, owing to improvements in subscriber mix, 4G subscriber additions, and an increase in entry-level tariffs.