Vodafone Idea Allocates Rs 2,458 Crore in Shares to Nokia & Ericsson

Vodafone Idea is set to allocate shares worth Rs 2,458 crore to vendors Nokia India and Ericsson India to partially clear their dues. The shares will be issued at a price 35% higher than the company's follow-on offer price and will be locked in for six months, pending shareholder approval.


PTI | New Delhi | Updated: 13-06-2024 16:36 IST | Created: 13-06-2024 16:36 IST
Vodafone Idea Allocates Rs 2,458 Crore in Shares to Nokia & Ericsson
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In a strategic move to clear its outstanding debts, Vodafone Idea has announced the allocation of shares valued at Rs 2,458 crore to key vendors Nokia India and Ericsson India, as per a recent regulatory filing. This allocation will be done on a preferential basis, at a price considerably higher than the company's follow-on offer price and comes with a six-month lock-in period.

The board of Vodafone Idea Ltd (VIL) confirmed the allotment of approximately 166 crore equity shares, each valued at Rs 10, to these vendors at an issue price of Rs 14.80 per share. This move is subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM) scheduled for July 10, 2024.

Both Nokia and Ericsson, longstanding partners and significant suppliers of network equipment to VIL, will receive shares worth Rs 1,520 crore and Rs 938 crore respectively. This preferential allotment is aimed at settling part of Vodafone Idea's substantial dues to these vendors, marking a significant step in the telecom operator's ongoing debt management strategy.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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