Vodafone Idea board approves ₹14,500 cr fund-raising plan

Debt-ridden telecom firm Vodafone Idea Ltd (VIL) on Thursday approved 4,500 cr fund-raising plan from its promoters – UK’s Vodafone Group and India’s Aditya Birla Group. 

The company has also approved issuance of upto 3.38 billion equity shares at issue price of 13.30 per share “for an aggregate consideration of up to 4,500 crores 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…,” the firm said in a regulatory filing.

 

The board also cleared raising another 10,000 crore via equity and debt instruments, the company added.

The cash-strapped telco will issue “…equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares or a combination thereof up to an aggregate amount of Rs. 10,000 crore by way of a private placement, qualified institutions placement or through any other permissible mode ..

Shares of Vodafone Idea surged 7% to 11.17 on the BSE in today’s intra-day trade in an otherwise slippery market ahead of the board meeting. 

The stock of telecom services provider quoted higher for the fourth straight day, and has rallied 16% during the period.

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