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Vodafone Idea board authorizes Rs 2,458-cr share sale to Nokia, Ericsson.
Jun 13, 2024 06:37 pm

Divya Delhi: Vodafone Idea announced on June 13 that its board has approved a preferential offering of 166 crore shares at Rs 14.80 each to raise up to Rs 2,458 crore. Vodafone Idea stated in a regulatory filing that it will give Nokia Solutions and Networks India Private Limited 102.7 crore shares worth Rs 1,520 crore and Ericsson India Private Limited 63.37 crore shares worth Rs 938 crore. VIL stated that the board also recommended holding an extraordinary general meeting on July 10 to approve the above measures. It said this preferred allotment price is 35% higher than the FPO pricing and has a 6-month lock-in. After this preferential issuance, Nokia and Ericsson will own 1.5 percent and 0.9 percent of Vodafone Idea.  The Promoter (ABG and Vodafone) would own 37.3 percent, the Government of India 23.2 percent, and the public 37.1 percent. VIL raised Rs 24,000 crore with this equity issuance. It added that the company is in talks with lenders to obtain Rs 25,000 crore in debt finance in line with its fund-raising agenda. Vodafone Idea Limited CEO Akshaya Moondra said, “As VIL embarks on its growth journey, support from key stakeholders is critical and the agreement with Nokia and Ericsson reaffirms these vendors as long-term partners of the Company, and sets the stage for the next phase of our growth.” About the fundraising proposal,