Vodafone Idea Board nods fund raising plan worth Rs14,500 crore

4 Mar 2022 , 09:56 AM

On Thursday, Vodafone Idea Limited, in its Board meeting, has approved a fund raise of Rs14,500 crore from its promoters — UK’s Vodafone Group and Aditya Birla Group, India. It will also raise funds from external investors.

The company will be raising Rs4,500 crore through a preferential issue at Rs13.30 per share to its promoters or other related entities. Out of the total amount, Vodafone Group’s share will be Rs3,375 crore or $450 million which will be infused by sale of company’s stake in Indus Towers.

So far, the Board has agreed to an issue of up to 3,38,34,58,645 equity shares at Rs. 13.30 a share, aggregating Rs4,500 crore to Euro Pacific Securities Ltd and Prime Metals Ltd. of the Vodafone Group and Oriana Investments Pte Ltd.

Company’s Board also approved another fund raise worth Rs10,000 crore via equity and debt instruments, mentioned the company in its statement.

Post this development, Vodafone Idea’s stock opened higher at Rs11.30, but speedily erased all the gains and was trading 3.60% lower at Rs10.70 against its previous closing price of Rs11.10.