Vodafone Idea Approves Rs 14,500 Cr Capital Infusion: This Is How It Happened

The board of Vodafone Idea has now approved an infusion of Rs 14,500 crore from its promoters. These promoters are UK’s Vodafone Group and India’s Aditya Birla Group (ABG) and external investors as well.

Read on to find out all the details about this new infusion!

Vodafone Approves Infusion Of Rs. 4500 Crores

The telecom company will reportedly raise Rs.  4,500 crore ($600 million) through a preferential share issue at Rs 13.30 a share. The shares will be sold to its promoters or its related entities. 

A separate statement by the company confirmed that Vodafone Group’s share will be Rs 3,375 crore, or $450 million of the total amount, and it will be paid from funds raised by the partial sale of the company’s stake in Indus Towers.

The company stated that the board has approved the issuance of to 3,38,34,58,645 equity shares at Rs. 13.30 a share “for an aggregate consideration of up to Rs 4,500 crores to Euro Pacific Securities Ltd and Prime Metals Ltd (Vodafone Group entities and promoters of the Company), and Oriana Investments Pte Ltd (Aditya Birla Group entity forming part of the promoter group) on a preferential basis…,”

Vodafone’s Stock Goes Up 6.1%

As per reports, the company’s stock was 6.1% higher at Rs. 11.08 on the BSE. The board has also cleared raising another Rs. 10,000 crores through equity and debt instruments.

As per the statement by Vodafone, the telco will issue …equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares or a combination thereof up to an aggregate amount of Rs. 10,000 crore by way of a private placement, qualified institutions placement or through any other permissible mode in one or more tranches.”

The Board has also approved the convening of an extraordinary general meeting of the operator to approve the fund-raising moves on March 26, 2022.

The Vodafone Group’s statement says that Rs. 1420 crores have been raised by selling 63.6 million shares or  2.4%, in Indus Towers at INR 226.84 per share. The company plans to sell 127.1 million shares, or 4.7%, in Indus to Bharti Airtel for INR224.5763 a share. This will earn the company under Rs. 2900 crores.