NEW DELHI: Vodafone Idea (VIL), the country’s third-largest telecom service provider, announced on Monday that its Board of Directors has approved the issuance of up to 176 crore equity shares on a preferential basis to raise Rs 1,980 crore.
The telco will issue these shares to Omega Telecom Holdings Private Limited (Rs 1,280 crore) and Usha Martin Telematics Limited (Rs 700 crore), both Vodafone Group companies. The shares will be issued at a price of Rs 11.28 per share, which represents a premium of nearly 40% over the closing price of Rs 8.11 on December 9, 2024.
“Up to 1,755,319,148 equity shares of face value of Rs 10 each at an issue price of Rs 11.28 per equity share (including a premium of Rs 1.28 per equity share) for an aggregate consideration of up to Rs 1,980 crore,” said the company in a stock exchange filing.
Vodafone Group holds a 22.56% stake in VIL, while the Aditya Birla Group holds 14.76%. The government is the largest shareholder with a 23.15% stake. The telco will convene an extraordinary general meeting to seek shareholder approval for the preferential issue. Last week, the parent company of VIL, Vodafone Group, announced sale of its remaining 3% stake in Indus Towers for over $300 million (approximately Rs 2,540 cr) in a block deal.