Vodafone Idea, one of India’s leading telecom service providers on Thursday announced that its board has given the green light for the issuance of approximately 166.8 crore equity shares valued at Rs 2,458 crore on a preferential basis.
Vodafone Idea informed the stock exchanges that it will allot 102.7 crore shares (equivalent to a 1.48 percent stake), totaling Rs 1,520 crore, to Nokia Solutions and Networks India Private Limited in its regulatory filing.
In its regulatory filing, Vodafone Idea specified that it would issue the remaining 63.7 crore shares (0.91 percent stake), amounting to Rs 938 crore, to Ericsson India Private Limited, a non-promoter entity of the company.
The telecom operator’s board also approved the convening of an extraordinary general meeting (EGM) scheduled for 10 July 2024.
Last month, Vodafone Idea announced plans to raise up to Rs 2,075 crore through a preferential share issue to Oriana Investments, an entity of the Aditya Birla Group.
Following the latest equity share allotment, Vodafone Idea’s paid-up equity share capital has risen from Rs 66,483.45 crore to Rs 67,878.88 crore, as disclosed in the filing.
Earlier in April, the company successfully raised approximately Rs 18,000 crore through a follow-on public offer.
Despite these financial maneuvers, Vodafone Idea reported a net loss of Rs 7,674 crore for the January-March quarter, compared to Rs 6,418.9 crore in the corresponding quarter of the previous fiscal year.
On Thursday, the company’s shares closed at Rs 16.08 apiece, reflecting market sentiment following the board’s decision.
Vodafone Idea continues to navigate through the competitive telecom landscape in India, focusing on strategic investments and financial restructuring to enhance its market position and operational capabilities.
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