Vodafone Idea has given the go ahead to raise Rs. 1,980 crore through a preferential share issue. The shares will be offered to its promoter entities, Omega Telecom Holdings (up to Rs. 1,280 crore) and Usha Martin Telematics (up to Rs. 700 crore), both part of the Vodafone Group.
The company will issue up to 1,755,319,148 equity shares, each with a face value of Rs. 10, at an issue price of Rs. 11.28 per share (which includes a premium of Rs. 1.28). This decision was made at the company’s board meeting held today.
Following the issue, Omega Telecom Holdings’ stake in Vodafone Idea will increase from 0.4 per cent to 1.98 per cent, while Usha Martin Telematics’ stake will rise from 0.13 per cent to 1 per cent.
The preferential allotment will follow the guidelines of the Securities and Exchange Board of India (SEBI), with the floor price to be determined based on the relevant date of December 6, 2024.
This fund-raising initiative is aimed at strengthening Vodafone Idea’s financial position and supporting its growth plans.
Vodafone Idea reduced its losses to Rs. 7,176 crore in the second quarter of FY25, compared to a loss of Rs. 8,738 crore in the same quarter last year. This indicates an improvement of over Rs. 1,500 crore in its financial performance.