Home Business Vodafone Idea Board Gives Nod To Raise Rs 4,500 Crore From 3 Promoter Group Firms

Vodafone Idea Board Gives Nod To Raise Rs 4,500 Crore From 3 Promoter Group Firms

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New Delhi: Vodafone Concept on Thursday stated its board has permitted the allotment of 338.3 crore fairness shares at Rs 13.30 per scrip to a few promoters group entities – Euro Pacific Securities, Prime Metals and Oriana Investments – for about Rs 4,500 crore.

The telecom operator had earlier this month introduced Rs 14,500 crore fundraising plans, the place promoters would inject Rs 4,500 crore.

“…the capital elevating committee of the Board of Administrators has, at its assembly held at the moment…thought-about and permitted the allotment of three,38,34,58,645 fairness shares of Rs 10 every for money at a problem worth of Rs 13.30 per fairness share (together with a premium of Rs 3.30 per fairness share), aggregating to Rs 4,500 crore to the next allottees,” Vodafone Concept stated in a BSE submitting.

This contains allotment of 1,96,66,35,338 fairness shares to Euro Pacific Securities (promoter), 57,09,58,646 fairness shares to Prime Metals (promoter), and 84,58,64,661 fairness shares to Oriana Investments (promoter group).

The shareholders of the corporate had permitted the stated issuance via a particular decision handed on the extraordinary basic assembly held on March 26, 2022.

“…after the above allotment of the fairness shares, the paid-up fairness share capital of the corporate stands elevated to Rs 3,21,18,84,78,850 consisting of 32,11,88,47,885 fairness shares of the face worth of Rs 10 every,” it added.

Debt-ridden telecom operator Vodafone Concept (VIL) has on March 3 knowledgeable that its board has permitted elevating as much as Rs 14,500 crore, together with Rs 4,500 crore from promoter entities — Vodafone and Aditya Birla Group.

An quantity of Rs 10,000 crore could be raised by means of fairness or debt devices, in a number of tranches, it had stated.

In a regulatory submitting, the corporate had then acknowledged that the board has cleared issuance of as much as 338.3 crore fairness shares of the face worth of Rs 10 every at a problem worth of Rs 13.30 per fairness share for an combination consideration of as much as Rs 4,500 crore.

The fundraising comes at a time when Indian telecom operators are including extra firepower to their arsenal because the market gears up for the rollout of 5G companies that can usher in ultra-high-speed and spawn new-age companies and enterprise fashions.

The telecom division is working to arrange the groundwork for the public sale of 5G radiowaves, whilst regulator Trai’s suggestions on spectrum pricing and different elements are anticipated shortly.

Birlas personal over 27 per cent stake in VIL, whereas Vodafone Plc holds greater than 44 per cent.

Telecom service suppliers, VIL specifically, had obtained a shot within the arm with the federal government final yr approving a blockbuster reduction bundle that included a four-year break for firms from paying statutory dues, permission to share scarce airwaves, change within the definition of income on which levies are paid and 100 per cent international funding via the automated route.

The federal government additionally gave telcos the choice to transform the curiosity quantity pertaining to the moratorium interval into fairness.

Following this, Vodafone Concept has opted to pay curiosity dues of round Rs 16,000 crore via preferential shares.

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