Vodafone Idea Allots Equity Worth ₹1,910 Crore to Promoters

Vodafone Idea Limited (VIL) raised ~₹1,910 crore through a preferential allotment of equity shares to its promoters, Omega Telecom Holdings Pvt. Ltd. and Usha Martin Telematics Ltd. The telecom giant issued 1,69,32,18,361 equity shares at ₹11.28 per share, including a premium of ₹1.28 per share. Of the total, Omega Telecom received 1,08,45,94,607 shares, while Usha Martin Telematics was allotted 60,86,23,754 shares​.

Board and Member Approvals

The allotment was approved during the company’s board meeting on December 9, 2024, followed by a special resolution passed by its members on January 7, 2025. The Capital Raising Committee finalized and executed the allocation on January 9, 2025. The meeting, held to formalize the issuance, was concluded soon.

Paid-Up Capital Post-Allotment

With this allotment, Vodafone Idea’s paid-up equity share capital has increased to ₹71,393.03 crore, now comprising 7,139.3 crore equity shares with a face value of ₹10 each. The issuance follows the guidelines outlined in Chapter V of SEBI’s ICDR Regulations, 2018​.

Promoters’ Holdings and Usage of Funds

Currently, Omega Telecom and Usha Martin hold stakes of 0.4% and 0.13% in the company, respectively. The funds raised are anticipated to address financial obligations, including dues of approximately ₹6,000 crore owed to Indus Towers. Additionally, Vodafone Idea is exploring raising ₹25,000 crore through bank debts, though discussions on this remain ongoing​.

Network Expansion 

In 2024, Vodafone Idea expanded its network by adding over 46,000 new sites and boosting capacity at more than 58,000 locations. The company is also preparing for a phased rollout of 5G services in India, collaborating with global names such as Ericsson, Nokia, and Samsung​.

Market Performance

Vodafone Idea’s stock saw minimal movement following the announcement. As of 12:38 PM on January 10, Vodafone Idea’s share price stands at ₹7.82, down by 1.26% for the day, showing a decline of 53% over the past six months and 51.58% over the past year.

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