Vodafone Idea's Strategic Move: Over 175 Crore Shares to be Issued

Vodafone Idea's board has approved the issuance of over 175 crore shares to Vodafone Group entities, aiming to raise Rs 1,980 crore. The move is part of a preferential share issue, priced at Rs 11.28 per share, to reduce the company's debt burden, with an extraordinary general meeting scheduled for approval.

In a bid to alleviate its financial struggles, Vodafone Idea announced on Monday that its board has sanctioned the issuance of up to 175.53 crore shares to Vodafone Group entities. This preferential issue is expected to accumulate Rs 1,980 crore.

The proposed share issuance, set at an issue price of Rs 11.28 per equity share, aims to inject much-needed capital into the debt-laden telecom operator. According to Vodafone Idea, the share price encompasses a face value of Rs 10 and a premium of Rs 1.28.

Set to be finalized during an extraordinary general meeting on January 7, 2025, the plan sees Omega Telecom Holdings Private Limited and Usha Martin Telematics Limited as principal recipients. The floor price was determined on December 6, 2024.

(With inputs from agencies.)