Struggling with significant debt, Vodafone Idea’s (VI) board has greenlit a plan to raise ₹2,075 crore from its promoter, the Aditya Birla Group. In a regulatory filing on Saturday, the telecom operator disclosed the approval, stating that it would issue up to 1,395,427,034 equity shares at a face value of ₹10 each, priced at ₹14.87 per share (inclusive of a premium of ₹4.87 per share) to Oriana Investments Pte Limited, an entity of the Aditya Birla Group.
Additionally, the VI board has endorsed an increase in the company’s authorized share capital from the existing ₹75,000 crore to ₹1 lakh crore. This augmented capital will consist of ₹95,000 crore in equity share capital and ₹5,000 crore in preference share capital.
An extraordinary general meeting (EGM) is scheduled for May 8 to seek shareholders’ approval for these proposals.
Also Read: Assam CM Accuses Congress Manifesto of Fitting ‘Pakistan, Not India’; Congress Retaliates
Vodafone Idea, currently carrying a debt burden of ₹2.1 lakh crore, has been grappling with quarterly losses amid a declining subscriber base. Trai’s (Telecom Regulatory Authority of India) recent data reveals a continual decline in VI’s subscriber numbers. In January 2024 alone, the company lost 15.2 lakh wireless subscribers, shrinking its mobile subscriber base to 22.15 crore, a sharp contrast to the growth experienced by competitors Reliance Jio and Bharti Airtel.
In February, the VI board approved a plan to raise up to ₹20,000 crore in equity from promoters and investors by June. This proposal was subsequently ratified in an EGM held on April 2. VI also aims to secure ₹45,000 crore through a combination of equity and debt to enhance its offerings and combat sustained subscriber losses, aligning itself with the services provided by competitors Jio and Airtel.
The Yogi Adityanath administration has launched a tree-planting campaign to make Prayagraj environmentally sustainable for…
Singh noted that, over seven years, police encounters have killed 197 criminals and injured 6,329.…
The Election Commission of India endorsed the appointment of Sanjay Kumar Verma as the new…
Devotees at Mathura's Banke Bihari temple gathered to collect water dripping from a sculpted elephant,…
A nine-judge SC bench ruled that the State cannot indiscriminately seize private property for redistribution…
Junior doctors in WB protested Tuesday over alleged flaws in the CBI chargesheet on their…