Vodafone Idea announced on Thursday that its board has completed the allotment of 338.3 billion shares at £13.30 per share in three Promoter Group companies – Euro Pacific Securities, Prime Metals and Oriana Investments – for around Rs 4,500 billion approved.
The telecom operator earlier this month announced plans to raise 14,500 crore in donations, where promoters would bring in 4,500 crore.
“The Capital Raising Committee of the Board of Directors, at its meeting today, reviewed and approved the allotment of 3,38,34,58,645 shares at ₹10 each for cash at an issue price of ₹13.30 per share[includingapremiumof₹330pershare)makingatotalof₹4500croreandthesubsequentallotments”saidVodafoneIdeainaBSE-Filing[includingapremiumof₹330perequityshare)aggregatingto₹4500croretothefollowingallottees”VodafoneIdeasaidinaBSEfiling[einschließlicheinerPrämievon330 ₹proAktie)wasinsgesamt4500 ₹ CroreandiefolgendenZuteilungsempfängerergibt“sagteVodafoneIdeaineinerBSE-Einreichung[includingapremiumof₹330perequityshare)aggregatingto₹4500croretothefollowingallottees”VodafoneIdeasaidinaBSEfiling
This includes the allocation of 1,96,66,35,338 shares to Euro Pacific Securities (organizer), 57,09,58,646 shares to Prime Metals (organizer) and 84,58,64,661 shares to Oriana Investments (organizer group). .
The Company’s shareholders had approved said issue by special resolution of the Extraordinary General Meeting on March 26, 2022.
“Following the above-mentioned allotment of common shares, the paid-up share capital of the company increases to ₹3,21,18,84,78,850, consisting of 32,11,88,47,885 common shares with a par value of ₹10,” he added.
Debt-plagued telecoms operator Vodafone Idea (VIL) said on March 3 that its board had approved raising up to £14,500m, including £4,500m from project promoters Vodafone and Aditya Birla Group.
An amount of ₹10,000 crore would be raised in the form of equity or debt instruments in one or more tranches, it said.
In a regulatory filing, the company said the board had authorized the issuance of up to 338.3 million shares of £10 par value at an issue price of £13.30 per share for aggregate consideration of up to £4,500 crore.
The fundraising comes at a time when Indian telecom operators are adding more firepower to their arsenal as the market prepares for the launch of 5G services that will usher in ultra-high speeds and bring about new services and business models.
The telecoms department is working to prepare the groundwork for the auctioning of 5G radio waves, although the regulator TRAI’s recommendations on spectrum pricing and other aspects are expected soon.
The Birlas own over 27% of the shares in VIL, while Vodafone Plc owns over 44%.
Telecom providers, notably VIL, were shot in the arm last year when the government approved a blockbuster aid package that included a four-year break for companies from paying statutory fees, allowing scarce radio waves to be shared and changing the definition of Income on which duties are paid and 100 percent foreign investment via the automatic route.
The government also gave telecom companies the option to convert the interest amount for the moratorium period into equity.
Thereafter, Vodafone Idea elected to pay approximately 16,000 crore of interest charges through preferred shares.