Vodafone Idea Allocates Shares Worth ₹2,075 Crore to Group Entity

Vodafone Idea Allocates Shares Worth ₹2,075 Crore to Group Entity: On a preferential basis, the Vodafone Idea board approved the allocation of shares worth $2,000 crore to Oriana Investments Pte. Ltd, an Aditya Birla Group entity.

In addition, the board increased the authorized share capital of the company to $1 trillion, split into $95,000 crores in share capital and 5,000 crores in preference shares.

As of Friday's closing price on the BSE, the shares are trading at $14.87 each, higher than their issue price of $14.87 apiece.

This is up from the existing ₹75,000 crores, divided into ₹70,000 crore share capital and Rs. 5,000 crore preference share capital.

According to a statement to the exchanges on Saturday, an EGM will be held on 8 May to approve these board resolutions.

Check Out: Meet The Actress Who Purchased Isha Ambani Mansion For Rs 494 Crore: Exploring Her Net Worth

In just one week, Vodafone Idea shareholders approved the issuance of $20,000 worth of securities. According to Mint, the third largest carrier is planning to raise $20 billion from the market through a follow-on public offer (FPO) likely as early as next week, led by Axis Bank, Jefferies Group and State Bank of India. As soon as the offer is accepted, a higher amount of debt will be raised from banks.

There will be equity fundraising by existing promoters, the company had said earlier, as part of the 45,000-crore fundraising initiative approved by shareholders in February.

Upon completion of the equity fundraise, Vodafone Idea will look to raise debt, bringing the total amount of funding to up to Rs 45,000 crore.

Check Out: Meet India Wealthiest Woman: Her Net Worth Soars To $35.5 Billion

The carrier lost 1.5 million subscribers in January, up from 1.4 million in December 2023. Its total subscriber base stands at 221.5 million as of January.

It has the lowest average revenue per user, a benchmark for telco profitability, among the top three carriers, at ₹145 per user per month.

After Reliance Jio and Bharti Airtel launched 5G services across the country last year, the telecom operator remains the only one without consumer-end 5G services.

Among peers Reliance Jio and Bharti Airtel, it is the laggard with the highest debt load and declining customer base of $2.1 trillion.

Check Out: What You Need To Know Today According To Finance Ministry 6-Point Note On New Tax Regime