Vodafone Idea Ltd., one of India’s leading telecom companies, has announced plans to raise ₹1,980 crore to strengthen its financial position. The company aims to achieve this through a preferential issuance of equity shares, a strategic move to address funding requirements amidst intense market competition.
Telecom giant Vodafone Idea Ltd. has announced a significant equity fundraising plan to bolster its financial position. The company’s board of directors has approved a preferential issuance of equity shares to raise up to ₹1,980 crore. This move is aimed at addressing financial needs and sustaining operations amid a competitive telecom landscape.
The fundraising plan involves the issuance of 175,53,19,148 equity shares at ₹11.28 per share. Each share comprises a face value of ₹10 and a premium of ₹1.28. The funds will primarily come from Vodafone Group entities, highlighting the parent company’s commitment to supporting its Indian operations.
Vodafone Idea plans to raise ₹1,280 crore from Omega Telecom Holdings Private Limited and ₹700 crore from Usha Martin Telematics Limited. These Vodafone Group entities are stepping up as major contributors to the planned equity infusion.
To finalize the issuance, Vodafone Idea has scheduled an extraordinary general meeting (EGM) on January 7, 2025. Shareholders will be asked to approve the preferential allotment.
As of December 10, 2024, 12:50 PM, shares of Vodafone Idea are trading at ₹8.05 per share with a decline of 0.49% from its previous day’s closing price. Over the last month, the stock has seen a surge of 2.81%. The stock has a 52-week high and 52-week low of ₹19.18 per share and ₹6.61 per share respectively.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 10, 2024, 1:38 PM IST
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