Vodafone Idea Limited’s (Vi) board has approved a preferential share issue to raise Rs 20.75 billion from an Aditya Birla Group (ABG) entity, setting the stage for a wider funding programme.
According to the filing, the board has approved issuance of up to 1,395,427,034 equity shares of face value of Rs 10 each at an issue price of Rs 14.87 per equity share (including a premium of Rs 4.87 per equity share), aggregating to Rs 20.75 billion to Oriana Investments Pte. Limited, on a preferential basis.
As per the filing, Vi will seek shareholders’ approval at an extraordinary general meeting (EGM) on May 8, 2024 on the proposals.
The board has also approved an increase in the authorised share capital of the company from existing Rs 750 billion, divided into Rs 700 billion equity share capital and Rs 500 billion preference share capital, to Rs 1 trillion. The increased authorised share capital of the company will be divided into Rs 950 billion equity share capital and Rs 50 billion preference share capital.
The approvals are part of the company’s plans to raise Rs 200 billion of capital to fund its operations and lower its debt burden.
