Vodafone Idea Limited (Vi) has received approval to raise up to Rs 24.58 billion through a preferential share issue to Nokia and Ericsson. This strategic move aims to partially settle the pending dues and pave the way for the telco’s 4G expansion and 5G rollout.
According to the company’s statement, Vi’s board of directors approved the preferential allotment of 1.66 billion equity shares at Rs 14.80 per share to Nokia and Ericsson. Nokia will invest up to Rs 15.20 billion, while Ericsson’s investment will total up to Rs 9.38 billion.
It noted that the issue price is 35 per cent higher than the April 2024 follow-on public offer (FPO) of Rs 11 per share and includes a six-month lock-in period.
Following this share issue, Nokia and Ericsson will hold 1.5 per cent and 0.9 per cent stakes in VIL, respectively. Meanwhile, the promoters, Aditya Birla Group and Vodafone Group Plc, will own 22.8 per cent and 14.5 per cent, respectively, and the government’s stake will be 23.2 per cent. The remaining 37.1 per cent will be held by the public.
Additionally, the company is actively discussing to secure debt funding of Rs 250 billion with lenders.
As per company filings, Vi plans to set up 36,000 new 4G sites, expand the capacity of 40,800 existing 4G sites, and establish 22,000 new 3G sites over the next two years. The cost of setting up a 4G site is Rs 1.45 million, with Rs 1.3 million for equipment and Rs 150,000 for services.
