Vodafone plans to invest Rs 3,375 crore in Vodafone Idea Limited. At the same time, apart from Vodafone, partner Aditya Birla Group also has a plan to invest Rs 1,125 crore.
Approval to raise funds for VIL shareholders
Vodafone Idea ,Vodafone Idea) shareholders have approved the company’s plan to raise Rs 14,500 crore. The company has given this information on Saturday. According to the company, the shareholders held the EGM on Saturday (EGM) approved this proposal. In the EGM, VIL had made a special proposal to issue equity shares worth Rs 4500 crore to Vodafone and Aditya Birla Group companies, along with the company also made a special offer to the shareholders (shareholders Permission was also sought from ) to raise Rs 10 thousand crore through ADR, GDR or FCCB. Vodafone plans to invest Rs 3,375 crore in telecom service provider Vodafone Idea Limited (VIL). At the same time, apart from Vodafone, partner Aditya Birla Group also plans to put Rs 1,125 crore in debt-laden VIL.
The board had given approval in early March.
The board of directors of debt-ridden telecom company Vodafone Idea Limited (VIL) had in early March approved raising up to a total of Rs 14,500 crore, including Rs 4,500 crore from promoter entities, then sale of equity, or An amount of Rs 10,000 crore will be raised through debt instruments like ADRs (American Depository Receipts), GDRs (Global Depository Receipts) and FCCBs (Foreign Currency Convertible Bonds). According to the company, the board has approved the issue of 3383 crore equity shares of face value of Rs 10 each at a price of Rs 13.30 per equity share, which will raise a total of Rs 4,500 crore, VIL had informed that these shares will be held by Euro Pacific Securities Ltd. and Prime Metals Limited (Vodafone Group entities and company promoters) and Oriana Investments Private Limited (Aditya Birla Group’s entity) on a preferential basis.
Bharti Airtel to buy Vodafone Group’s stake in Indus Towers
Vodafone is selling its stake in Indus Towers in another episode of improving the financial situation. Telecom company Bharti Airtel will buy 4.7 percent stake in Indus Towers from Vodafone Group for about Rs 2,388 crore. Airtel said in the information sent to the stock market on Friday that this transaction will be done at a price of Rs 187.88 per share. The acquisition will be based on an agreement between several entities of Vodafone Group, including Euro Pacific Securities, the company said. Based on the price formula agreed in this agreement, the deal will be completed at Rs 187.88 per share, which together translates to Rs 2,388 crore. will have to be completed. Bharti Airtel had signed an agreement on February 25, 2022 to buy Vodafone’s 4.7 percent stake in Indus Towers. This settlement was done on the condition of using the proceeds from the deal to invest in Vodafone-Idea and pay the dues of the mobile tower company.