Voda Idea to raise Rs 14,500 crore before 5G sale - Times of India

Voda Idea to raise Rs 14,500 crore before 5G sale – Times of India

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NEW DELHI: Months after handing out the majority ownership to the government in lieu of statutory interest payments, beleaguered Vodafone Idea announced a fund-raise running up to Rs 14,500 crore, possibly to finance network and business expansion.
The mop-up, approved by the company’s board, includes fund infusion by its private promoters — British telecom company Vodafone Plc and India’s Aditya Birla Group — who would chip in with a total of Rs 4,500 crore as they purchase 338. 3 crore equity shares (of face value of Rs 10 each) at an issue price of Rs 13. 30 per share.

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Vodafone Idea shares closed the day on Thursday at Rs 11. 05, up nearly 6% even though the BSE sensex was down by 366 points. The fresh promoter shares will be issued to Euro Pacific Securities and Prime Metals (Vodafone Group entities), and Oriana Investments (Aditya Birla Group entity) on a preferential basis. For the remaining Rs 10,000 crore, the board approved issuance of equity shares or securities convertible into equity shares, among other instruments.
The fund-raise comes amid plans to improve financial strength, especially as it carries a debt of Rs 1. 97 lakh crore. While the company was the biggest beneficia- ry of the government bailout announced in September, it desperately needs fresh fund infusion to strengthen its network, while preparing for 5G auctions. In the third quarter, the company had reported widening of its consolidated loss to Rs 7,231 crore. Against this, it had posted a loss Rs 4,532 crore in year-ago period. Voda Idea to raise Rs 14,500cr before 5G sale.



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