Vodafone Idea shares fell up to 4 per cent in early trade on March 4 after the board approved raising Rs 4,500 crore by issuing shares to promoters on a preferential basis. Vodafone Idea’s board in its meeting held on March 3 has approved the issue of 3,38,34,58,645 equity shares of Rs 10 face value at an issue price of Rs 13.30 per equity share (including premium of Rs 3.30 per share). . This will be a 10% premium price over its floor price.
The board also approved convertible securities, global depository receipts, American depository receipts, foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants in equity shares or shares worth Rs 10,000 crore. This amount will be raised in one or more installments through private placement, qualified institutions placement or any other mode.
Further, the Board approved the convening of an Extraordinary General Meeting on 26 March to approve all these. Last week, Vodafone Group raised around Rs 1,442 crore by selling 2.4 per cent stake in Indus Towers through a block deal to an undisclosed investor.
The deal has been done on the condition that the funds will be used by Vodafone in the form of new equity in Vodafone Idea. Along with this, this fund will be given to Indus to clear the dues of Vodafone Idea.
Know Investment Reports of Brokerage Houses on VODAFONE IDEA and M&M FINANCE
Let us inform that research firm Nomura has reduced the rating of Vodafone Idea to its target of Rs 8 per share. According to Nomura, promoter investment at a premium is positive for the company, but not enough for revival. On the other hand, Vodafone Idea will be left with only about Rs 2,550 crore after funding Indus.
In the financial year 2023-24, the company has to repay the foreign debt of about Rs 5,400-5,700 crore.
The board appointed KK Maheshwari, vice-chairman and non-executive director of UltraTech Cement of Aditya Birla Group, as an additional director (non-executive and non-independent) with effect from March 3.
Today i.e. on March 4, at 09:17 am, Vodafone Idea was trading at Rs 10.81 on the BSE, down by Rs 0.27 or 2.44 percent.
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