Vi gets ₹2,075 Crore lifeline from Aditya Birla Group

8 Apr 2024 , 11:13 AM

On April 6, the telecom operator Vodafone Idea declared that plans to raise ₹2,075 Crore from its promoter Aditya Birla Group had been authorized by the board.

At an issue price of ₹14.87 per share, including a premium of ₹4.87 per share, Vodafone Idea announced that its Board has approved the issuance of up to 139.5 Crore equity shares to Oriana Investments Pte. Ltd., an Aditya Birla Group business. The value of this preferential offer is ₹2,075 Crore, and it is contingent upon shareholder approval at a general meeting.

“Oriana Investments Pte. Ltd (an Aditya Birla Group entity that is a part of the promoter group) will receive up to 1,39.5 Crore equity shares of face value of ₹10 each at an issue price of ₹14.87 per equity share (including a premium of ₹4.87 per equity share), aggregating to ₹2,075 Crore on a preferential basis,” according to a filing from Vodafone Idea. The approval was granted by the board of directors.

The telecom operator stated that April 8, 2024, is the important date for figuring out the floor pricing.

The business added that its Board has approved raising the company’s authorized capital to ₹1 lakh Crore from the present ₹75,000 Crore, which is made up of ₹5,000 Crore in preference shares and ₹70,000 Crore in equity shares.

The telecom company stated that under the proposed modification, the enlarged authorized share capital will be split into two categories: equity share capital of ₹95,000 Crore and preference share capital of ₹5,000 Crore.

The business also disclosed in its regulatory filing that it will present these suggestions to shareholders for approval at an extraordinary general meeting on May 8.

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