Vodafone Idea to issue shares worth Rs 2,458 crore

In a significant move, Vodafone Idea has announced plans to issue new shares valued at Rs 2,458 crore. The telecom giant’s board approved the issuance of approximately 166 crore shares at Rs 14.80 each on a preferential basis.

The company will allot 102.7 crore shares totaling Rs 1,520 crore to Nokia Solutions and Networks India Private Limited. The remaining 63.37 crore shares, amounting to Rs 938 crore, will go to Ericsson India Private Limited.

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This decision comes amid challenging times for Vodafone Idea. The company’s shares closed 2.25 percent lower at Rs 16.07 on the BSE on June 13. Last month, it reported a widening loss of Rs 7,675 crore for the March quarter due to increased interest and financing costs.

For the fiscal year ending March 31, 2024, Vodafone Idea’s losses expanded to Rs 31,238.4 crore from Rs 29,301.1 crore the previous year. However, the annual revenue from operations saw a slight increase of 1.1 percent, reaching Rs 42,651.7 crore.

As Vodafone Idea navigates these financial challenges, the new share issuance could potentially provide a much-needed boost to the company’s resources and strategic positioning in the competitive telecom market.