On April 6, Vodafone Idea, a prominent telecom company, announced its plans to raise Rs 2,075 crore from its promoter, the Aditya Birla Group. The company’s Board has given the green light for the issuance of up to 1,39.5 crore equity shares to Oriana Investments Pte. Ltd., an entity within the Aditya Birla Group. These shares will be priced at Rs 14.87 per share, including a premium of Rs 4.87 per share. This preferential issue, subject to shareholder approval in a General Meeting, amounts to Rs 2,075 crore.
The decision, as outlined in Vodafone Idea’s filing, involves the issuance of equity shares with a face value of Rs 10 each at the specified issue price to Oriana Investments Pte. Ltd., a part of the promoter group. The company also revealed that April 8, 2024, will be considered the relevant date for determining the floor price.
Furthermore, the Board has approved an increase in the company’s authorized share capital from the current Rs 75,000 crore to Rs 1 lakh crore. This increase will see the equity share capital rise from Rs 70,000 crore to Rs 95,000 crore and the preference share capital remain at Rs 5,000 crore.
Vodafone Idea plans to present these proposals to its shareholders for approval at an extraordinary general meeting scheduled for May 8.
