Vodafone Idea Allots 40 Crore Shares to Nokia and Ericsson, Raises Rs 615 Crore

Vodafone Idea approved the allotment of over 40 crore shares to Nokia and Ericsson on a preferential basis, raising Rs 615 crore. This strategic move follows SEBI regulations to bolster the company's capital base, with shares priced at Rs 14.80 each. Shares closed at Rs 16.32, down 2% on Thursday.

Vodafone Idea has greenlit the allotment of more than 40 crore shares on a preferential basis to Nokia Solutions and Networks India and Ericsson India. In a filing with the exchange, the company confirmed that this move aligns with SEBI regulations and amounts to roughly Rs 615 crore, marking a strategic effort to bolster its capital base.

According to the company's statement, the breakdown includes approximately 25 crore equity shares allotted to Nokia Solutions and Networks India Pvt. Ltd., and over 15 crore shares to Ericsson India Pvt. Ltd. The issue price per share stands at Rs. 14.80, incorporating a Rs. 4.80 premium over the face value of Rs 10 per share.

The company's Capital Raising Committee approved the allocation in its recent meeting, stating, "The Capital Raising Committee of the Board ('Capital Raising Committee') has approved the second tranche of allotment of 41,52,02,701 equity shares. This allotment totals Rs. 614.5 crores on a preferential basis to Nokia Solutions and Networks India Private Limited (25,67,56,756 Equity Shares) and Ericsson India Private Limited (15,84,45,945 Equity Shares)."

Despite adding 0.8 million mobile broadband subscribers in May, Vodafone Idea (VIL) experienced a decline in both overall and active subscriber bases, losing 0.9 million and 1.7 million subscribers, respectively. Vodafone Idea shares closed at Rs 16.32, marking a decline of over 2 percent on Thursday. (ANI)