VI-Vodafone Idea Board Approves Issuance of Shares to Raise Funds
Details of the Issuance
Vodafone Idea board On December 9, gave the green light to issue up to 176 crore shares on a preferential basis in order to raise Rs 1,980 crore. These shares will be priced at Rs 11.28 each.
Who is Getting the Shares?
The board approved the preferential issue to Omega Telecom for Rs 1,280 crore and to Usha Martin Telematics for Rs 700 crore, both of which are entities of the Vodafone Group.
What Does This Mean for Vodafone Idea?
The issue price of Rs 11.28 per share represents a premium of almost 40% compared to the closing price of Vodafone Idea shares on December 9, which was Rs 8.11 per share. Currently, Vodafone Group holds a 22.56% stake in Vodafone Idea, Aditya Birla Group holds 14.76%, and the government holds 23.15%.
Future Plans
After using the funds to settle debts, Vodafone Idea intends to use the remaining proceeds towards issuing new equity shares once the terms of such a capital raise have been decided by the Board of Directors. Â
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