Vodafone calls Board Meeting intending to raise 2,075 crore fund from Promoters

By siliconindia  |  Thursday, 04 April 2024, 12:39 IST

Vodafone calls Board Meeting intending to raise Rs.2,075 crore fund from Promoters

Vodafone Idea Ltd, has decided on Wednesday, that, they will cal a board meeting on 6th April to consider issuing equity or convertible securities worth 2,075 crore on a preferential basis to one or more promoter group entities.

The telecom company has decided that, they will raise 20, 000 crore through equity-linked instruments. The proposal of the board has received approval on Wednesday. 97.65% public institutions and 98.62% non-public institutions voted in favour of approving the fund raising exercise.

Vodafone Idea has said that, they are connecting with banks for tying up debt funding, which follow the equity fundraising. Through a combination of equity and debt, the telecom operator intends to raise around 45,000 crore. It plans to use the proceeds to expand its 4G coverage and to roll out its 5G network, along with capacity expansion.

Last year company informed that the group of promoter will invest 2,000 crore in the company if needed. During earnings call last October, the management said that, the fund infusion is likely to be completed by the end of the December quarter. However, that did not materialize.

As of March 2023,Vodafone Idea's promoters held a 48.91% stake in the company, down from 50.36% in December. Aditya Birla Group companies like Grasim Industries Ltd. and Hindalco Industries Ltd., who also have a stake in Vodafone Idea, have also seen a marginal reduction in their stake compared to the December quarter. Grasim Industries now holds a 6.62% stake compared to 6.82% in December, while Hindalco owns a 1.5% stake from 1.54% earlier.

Among their public shareholder India's mutual funds have also has some stake in the company to 2.27% as of March 23, compared to 2.91% in December. ATC Telecom Infrastructure's name appears in the list of public shareholders in the March shareholding with 2.87%. This comes after the tower operator converted Optionally Convertible Debentures (OCDs) worth 1,440 crore into equity shares on March 19.

 

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