Vodafone Idea to raise Rs 436 crore from Vodafone Group, Telecom News, ET Telecom – Mac Pro Tricks

Vodafone Idea To Raise Rs 436 Crore From Vodafone Group, Telecom News, Et Telecom – Mac Pro Tricks
Vodafone Idea Will Raise 436 Million Rupees From The Vodafone GroupVodafone Idea, jointly promoted by Vodafone Group and Aditya Birla Group, will raise Rs 436.21 from its UK parent company to Rs. 10.20 a unit, as the cash telecom operator’s objective is to absorb all the resources it can to invest in its network and prepare for the next frequency auctions.

In an application to the Bombay Stock Exchange, the loss-making telecommunications company stated that its board of directors had approved the fundraising “issuing: (a) up to 42,76,56,421 shares with par value of Rs 10 per share; or (b) up to 42,76,56,421 Warrants which may be converted into Equity Shares by Euro Pacific Securities Ltd.

If the funds are raised through the distribution of shares, the issue price will be Rs. 10.20 pm equity interest (including share premium of Re. 0.20 per share).

In the case of bonds, the issue price will be Rs 10.20 and 100% of the issue price will be paid in advance upon subscription to the bonds. Each warrant can be converted into 1 share and the rights attached to the warrants can be exercised at any time within 18 months from the date of award.

Vodafone Idea shares rose 0.71% to close today’s trading at Rs 8.53. The announcement came after market hours.

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The Board of Directors also approved the convening of an extraordinary general meeting on Friday, July 15, 2022, to seek shareholder approval for said preferred issuance.

Earlier this week, the telecom company announced that it intends to raise up to Rs 500 crore from its UK promoter.

In February and March, the Vodafone Group sold 7.1% of Indus Towers shares – 2.4% through a block deal and 4.7% to Bharti Airtel – and raised around Rs 3,831 crore. Of this total, it invested Rs 3,375 crore in Vodafone Idea, subscribing to new issued shares. The proceeds were used by Vodafone Idea to partially settle outstanding payments to Indus Towers.

Vodafone Group’s new fundraising is expected to come from the balance of proceeds from its stake in Indus Towers, analysts say. Vodafone Idea has so far raised a total of Rs 4,500 crore through the issuance of new shares, while the rest comes from the Indian promoter.

Vodafone Idea To Raise Rs 436 Crore From Vodafone Group, Telecom News, Et Telecom – Mac Pro Tricks

In a presentation to the Bombay Stock Exchange on Sunday night, the loss-making company, jointly promoted by British telecoms giant Vodafone, and Aditya Birla Group, said its board of directors would meet on June 22 (Wednesday). .

The indebted telecom company desperately needs cash to invest in its network as well as to participate in upcoming spectrum auctions in late July. In addition to the initiator funds, the loss-making telecom company plans to raise an additional Rs 10,000 crore in equity from an outside investor and arrange debts of similar value from its creditors.

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But the process is suspended until the government converts the company’s interest on the accumulated shares into 33% of shareholders’ equity. The conversion and issuance of shares is expected to be completed soon.

Vodafone Idea chose to defer payment of its adjusted gross revenue (AGR) and frequency fees to the government for four years under a government assistance package for the telecommunications sector. The telecom company also opted to convert the interest resulting from the deferred contingent into state equity, which appears to be a 33% stake in the company. This will make the government the largest shareholder, but the initiators – Britain’s Vodafone Plc and India’s Aditya Birla Group – will jointly own 50% of the company.

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