Cash-strapped telco Vodafone Idea to raise Rs 4,500 crore by issuing shares to promoters

Vodafone Idea Ltd on March 3 said its board has approved raising Rs 4,500 crore via issuing shares to its promoters Vodafone Inc and Aditya Birla group entities on a preferential basis.

The board also approved the issue of shares or securities convertible into equity shares, global depository receipts, American depository receipts, foreign currency convertible bonds, non-convertible and convertible debentures, warrants etc worth Rs 10,000 crore in one or more tranches.

The firm will issue up to 3.39 billion shares at Rs 13.30 a share, 20% premium to its current market price, to Euro Pacific Securities Ltd, Prime Metals Ltd and Oriana Investments Pte Ltd on preference basis.

Euro Pacific Securities Ltd and Prime Metals Ltd are Vodafone Group firms while Oriana Investments Pte is Aditya Birla Group company. Vodafone Group and the Aditya Birla Group (ABG) own 44.39% and 27.66%, respectively in Vodafone Idea as its co-promoters.

The firm said its board has also approved the issue of shares or securities convertible into equity shares, global depository receipts, American depository receipts, foreign currency convertible bonds, non convertible and convertible debentures, warrants etc worth Rs 10,000 crore in one or more tranches.