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On June 22, indebted telecom operator Vodafone Idea Ltd (VIL) said its board had approved an increase to Rs 436.21 crore by issuing shares through various modes.

The board of directors of Vodafone Idea Ltd, at its meeting on June 22, 2022, approved the fundraising totaling up to Rs 436.21 crore, the company said in a regulatory filing.

“Up to 42,76,56,421 shares with a nominal value of Rs 10 each; or (b) up to 42,76,56,421 warrants convertible into shares, to Euro Pacific Securities Ltd (a Vodafone group entity and promoter of the company), on a preferential basis,” he said.

In the event that capital shares are allotted, the issue price will be Rs 10.20 per capital share (including a premium of Re 0.20 per capital share). In the event that warrants are allotted, the issue price will be Rs 10.20 per warrant, of which 100% of the issue price will be prepaid at the time of subscription of the warrants.

The board also approved the convening of an extraordinary general meeting of the company on Friday, July 15, 2022, to seek shareholder approval for the aforementioned preferential issuance, the company added.

Following the September reforms announced by the Centre, Vodafone Idea had opted to convert around Rs 16,000 crore of interest payable to the government into shares.

As a result, the government will hold around 33% of the company’s capital. Sources from the Department of Telecommunications (DoT) said that the proposal to convert VIL shares is in the final stages and that the required approvals on it are expected as soon as 7 to 10 days.

Shares of Vodafone Idea ended at Rs 8.53, up Rs 0.060, or 0.71% on BSE.

(Edited by : Shoma Bhattacharjee)

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