Vodafone-Idea will sell preference shares to Aditya Birla Group for Rs 2,075 crore.
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New Delhi (Uttam Hindu News): Vodafone Idea’s board of directors on Saturday approved a proposal to sell preference shares worth Rs 2,075 crore to the Aditya Birla Group unit. The board of directors approved the issue of 1,39,54,27,034 equity shares of face value Rs 10 at the rate of Rs 14.87 per equity share to Oriana Investments. Thus, a total of Rs 2,075 crore will have to be paid for these shares. Aditya Birla Group is one of the promoters of Oriana Investments.
The relevant date for determining the floor price of preference shares as per ICDR norms is April 8. At market close on Friday, April 5, Vodafone Idea shares were down 0.30 per cent at Rs 13.32 per share.
The Board of Directors has increased the authorized share capital of the company from the existing Rs 75 thousand crore (divided into equity share capital of Rs 70 thousand crore and preference share capital of Rs 5 thousand crore) to Rs 1 lakh crore (equity share capital of Rs 95 thousand crore and preference share capital of Rs 5 thousand crore). Also approved to be divided into preference share capital of Rs. 1000 crore.
An extraordinary general meeting of the company has been called on Wednesday, May 8 to approve these proposals passed by the Board of Directors. Earlier, in February, Vodafone Idea’s board of directors had approved raising funds of up to Rs 20 thousand crore through a combination of equity and equity-linked instruments.
The company is planning to raise around Rs 45 thousand crore through a combination of equity and debt. Its bank debt is currently less than Rs 4,500 crore. The capital raised from equity and debt will be invested in critical 4G coverage, 5G network rollout and capacity expansion.
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