Vodafone Idea board approves Rs 14,500 cr fund-raising plan
Vodafone Idea, a debt-ridden telecom operator, announced on Thursday that its board of directors has approved a capital raise of up to Rs 14,500 crore, including Rs 4,500 crore from promoter entities.
A total of Rs 10,000 crore would be raised through the sale of equity or debt instruments such as ADRs, GDRs, and FCCBs.
The company stated in a regulatory filing that the board of directors has approved the issuance of up to 338.3 crore equity shares with a face value of Rs 10 each at an issue price of Rs 13.30 per equity share for an aggregate consideration of up to Rs 4,500 crore.
These shares will be issued to Euro Pacific Securities Ltd and Prime Metals Ltd (both Vodafone Group entities and the company’s promoters), as well as Oriana Investments Pte Ltd (another Vodafone Group entity).
The board also authorized the issuance of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts, foreign currency convertible bonds, convertible debentures, and warrants in one or more tranches of up to Rs 10,000 crore.
The board also agreed to call an extraordinary general meeting of the company on March 26. Vodafone Idea (Vi) shares rose 6% to Rs 11.08 on the BSE on Thursday, in an otherwise volatile market ahead of the board meeting. The stock of a telecom services provider has risen for the fourth day in a row, gaining 16 percent in that time. On December 10, 2021, the stock reached a 52-week high of Rs 16.79.
Bharti Airtel recently agreed to purchase an additional 4.7 percent stake in Indus Towers from Vodafone Group. The two companies agreed to sign an agreement under which Vodafone will use the proceeds to invest in Vodafone Idea (Vi) and the latter will pay its outstanding debts to Indus Towers.
In Q3FY22, Vodafone Idea reported a consolidated net loss of Rs 7,230.9 crore, compared to a net loss of Rs 4,532.1 crore in Q3FY21. Revenue for the quarter was Rs 9,720 crore, a 3.3 percent increase from the previous quarter, aided by several tariff interventions, including the recent tariff hikes implemented by all operators in November 2021.
