Vodafone Idea | Image:Unsplash, Vodafone Idea
Debt-laden telecom company Vodafone Idea said its board has given its assent on raising Rs 2,075 crore from promoter Aditya Birla group, taking up its authorised share capital to Rs 1 lakh crore.
VIL will seek approval from shareholders at an extraordinary general meeting on May 8 on the proposals, as per a regulatory filing on April 6.
The board of Vodafone Idea has approved “issuance of up to 1,395,427,034 equity shares of face value of Rs 10 each at an issue price of Rs 14.87 per equity share (including a premium of Rs 4.87 per equity share), taking the total to Rs 2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group) on a preferential basis,” the filing said.
The board also greenlighted an increase in the authorised share capital of the company from the existing Rs 75,000 crore, divided into Rs 70,000 crore equity share capital and Rs 5,000 crore preference share capital to Rs 1 lakh crore, according to the filing.
The elevated authorised share capital of the company will now be split into Rs 95,000 crore equity share capital and Rs 5,000 crore preference share capital.
The approvals are part of the company’s outlay to raise Rs 20,000 crore of capital for financing its operations and lowering its debt burden.
(With PTI Inputs)
