Debt-ridden telecom agency Vodafone Idea on Saturday stated its board has authorised elevating Rs 2,075 crore from promoter Aditya Birla group and growing its authorised share capital to Rs 1 lakh crore. The firm will search shareholders’ approval at a unprecedented basic assembly on May 8 on the proposals, it stated in a regulatory submitting.
The Vodafone Idea board has authorised “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 2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis,” the submitting stated.
The elevated authorised share capital of the corporate will probably be divided into Rs 95,000 crore fairness share capital and Rs 5,000 crore choice share capital. The firm obtained shareholders nod for elevating up to Rs 20,000 crore by issuance of securities in a unprecedented basic assembly (EGM) held on April 2. Vodafone Idea has plans to raise Rs 45,000 crore by a mixture of fairness and debt because it seeks to match providers provided by rivals Reliance Jio and Bharti Airtel and arrest an alarming and extended subscriber churn.
The fundraise will arm VIL to enhance aggressive positioning within the Indian telecom market, the place it trails Jio and Bharti Airtel, by a large margin. In February this 12 months, the corporate’s board authorised elevating up to Rs 20,000 crore in fairness from promoters and different traders by June, because it regarded to shore up funds for the much-delayed 5G rollout and strengthening 4G providers.
Vodafone Idea, wherein the federal government now additionally holds over 33 per cent fairness stake, has been combating a determined battle for survival. It has a debt of Rs 2.1 lakh crore, and is reporting quarterly losses due to falling subscriber base. Trai’s newest information confirmed that Vodafone Idea continued to bleed on the subscriber entrance. VIL misplaced 15.2 lakh wi-fi subscribers, plunging its cellular subscriber base to 22.15 crore in January, in sharp distinction to subscriber beneficial properties by Jio and Airtel.
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