Vodafone Idea Ltd (VIL), a debt-ridden telecom operator, authorized a $4,500 cr fund-raising strategy from its owners, the Vodafone Group of the United Kingdom, and the Aditya Birla Group of India, on Thursday.
The company has also sanctioned the issuance of up to 3.38 billion equity shares on a preferential basis “for an aggregate consideration of up to ₹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,” according to a regulatory filing.
According to the corporation, the board has approved financing an additional 10,000 crore using stock and loan instruments.
The cash-strapped telecom company plans to 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 today’s intra-day trade, Vodafone Idea shares rose 7% to 11.17 on the BSE in an otherwise volatile market ahead of the board meeting. The stock of a telecom services company has risen for the fourth day in a row, gaining 16 percent in that time.
On Thursday, Vi finished 5.74 percent higher on the NSE at 11.05 and 6.1 percent higher on the BSE at 11.08.
