Vodafone Idea Limited (Vi) shareholders have approved a Rs 47.3 billion investment by the Aditya Birla Group through a preferential allotment of warrants at an extraordinary general meeting (EGM). Following the investment, the Aditya Birla Group’s stake in the telecom operator is expected to increase to around 13 per cent from 9.6 per cent.
Addressing shareholders at the meeting, Vi’s chairman said the company has successfully navigated one of the most challenging phases in its history through resilience and that its focus is now firmly on execution.
The fundraising will be carried out through the preferential allotment of up to 4.3 billion warrants to Suryaja Investments, an Aditya Birla Group entity, at an issue price of Rs 11 per warrant.
In May, the Aditya Birla Group announced plans to invest Rs 47.30 billion (approximately $500 million) in Vi, aiming to strengthen the financially stressed telecom operator’s balance sheet and support its efforts to compete with larger rivals.
According to the company, the fresh capital will be utilised for capital expenditure and loan repayments.
