Cash-strapped telecom company Vodafone Idea Ltd on Thursday announced plans to raise Rs 4,500 crore by issuing preferential shares to its promoters Aditya Birla Group and Vodafone Inc. . The company said that the board has approved this plan.
The company said it would issue 3.39 billion shares on a preferential basis to Euro Pacific Securities Limited, Prime Metals Limited and Oriana Investments Pte Ltd. Of this, Euro Pacific Securities and Prime Metals Limited are Vodafone Group companies. Oriana Investments, on the other hand, is a part of the Aditya Birla Group.
Vodafone Idea will issue shares to companies at Rs 13.30 per share, which is about 20 per cent higher than its current market price. Vodafone Group and Aditya Birla Group hold 44.39% and 27.66% stake in Vodafone Idea respectively and both are co-promoters of this telecom company.
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The company has also directed its Board to issue convertible securities, Global Depositories Receipts, American Depositories Receipts, convertible bonds, non-convertible and convertible debentures, warrants etc. in one or more tranches to the extent of Rs 10,000 crore. has been approved.
The company said that it has called an Extraordinary General Meeting (AGM) on March 26, in which the plan to raise this fund will be approved by the shareholders.
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. Apart from this, Vodafone has also announced to sell 4.7 percent of its tower company to Bharti Airtel. However, the deal has been done on the condition that Vodafone will incorporate the proceeds as fresh equity in Vodafone Idea and also pay off Vodafone Idea’s dues in Indus Towers.
Meanwhile, Vodafone Idea shares closed at Rs 11.05, up 5.74% on the NSE on Thursday.
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