Vodafone Idea Ltd. has approved the issuance of 139.5 crore shares with a face value of Rs 10 each to its promoters. These shares will be issued at an issue price of Rs. 14.87 per equity share, which is 11% higher than Friday's closing price. This issuance includes a premium of Rs. 4.87 per equity share, amounting to a total of Rs. 2,075 crores.
VI will issue the shares to Oriana Investments Pte. Ltd., a part of the Aditya Birla Group and the promoter group, through a preferential allotment. This issuance follows the guidelines outlined in Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
As of the March 2024 quarter, Oriana Investments Pte. Ltd. holds 299.31 crore shares, amounting to a 5.97% stake in Vodafone Idea Ltd. The floor price for the preferential issue will be determined based on the relevant date, which is April 8, 2024, as per the regulations outlined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations.
The board also greenlit a rise in the company's authorized share capital from Rs. 75,000 crores to Rs. 1,00,000 crores. This increase involves dividing the capital into Rs. 95,000 crore equity share capital and Rs. 5,000 crore preference share capital, up from the previous Rs. 70,000 crore equity share capital.
On Friday, shares of the company closed 0.30% lower at Rs 13.32 on the NSE, contrasting with a 0.04% rise in the benchmark Nifty 50.