Vodafone Idea board approves Rs 14,500 cr fund-raising plan 

Telecom major Vodafone Idea on Thursday announced that its board has approved issuance of shares for up to Rs 4,500 crore. 

The board approved issuance of up to 3.38 billion equity shares at issue price of Rs 13.30 per share.

"Issuance of upto 3.38 billion equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per equity share (including a premium of Rs. 3.30 per equity share), which is at a 10% premium to the floor price of Rs 12.08 for an aggregate consideration of up to Rs 4,500 crore to Euro Pacific Securities Ltd. and Prime Metals Ltd. (Vodafone Group entities and promoters of the company), and Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group)," the telco said in a stock exchange filing. 

It also added that the it has approved issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants of upto Rs 10,000 crore.

Earlier, Vodafone Idea had announced that it sold its 4.7% stake in Indus Tower to Bharti Airtel. The sale is made on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea and simultaneously remitted to Indus Towers to clear VIL's outstanding dues.

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst India's leading telecom service provider. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms.

The company reported a consolidated net loss of Rs 7,230.9 crore in Q3 FY22 as against a net loss of Rs 4,532.1 crore in Q3 FY21. Revenue for the quarter was Rs 9,720 crore, a QoQ improvement of 3.3%, aided by several tariff interventions including the recent tariff hikes taken by all operators in November 2021.

Shares of Vodafone Idea on Thursday closed 6.13 per cent higher at Rs 11.08 apiece on BSE.