VI Gets Nod For Rs 20,000 Crore Fundraise, To Mull Raising Rs 2,075 Crore From Promoters On April 6
The board, which is scheduled to meet on April 6, will also consider the issuance of equity or convertible securities worth Rs 2,075 crore to promoters.
Vodafone Idea Ltd.'s investors have approved its plans to raise up to Rs 20,000 crore through the issuance of securities during an extraordinary general meeting, as the cash-strapped telecom operator is hunting for new investors to fund the rollout of 5G.
The board, which is scheduled to meet on April 6, will also consider the issuance of equity or convertible securities worth Rs 2,075 crore to promoters, according to an exchange filing on Wednesday.
The company's board approved Rs 20,000 crore fundraising plans in late February and expects to complete the fundraise in the coming months.
Nearly 85% of the shareholders participated in the e-voting during the EGM, of which 99% approved the fundraising plans. Notably, only 1.6% of non-institutional public investors participated in the event, according to the EGM results shared on stock exchanges by the company.
The UK's Vodafone Group Plc owns 18.1% of Vodafone Idea, while the Aditya Birla Group holds a 32.3% stake.
The fundraise is part of the Aditya Birla Group's plans to raise Rs 45,000 crore through a combination of equity and debt. It remains engaged with its lenders to tie-up the debt funding, which will follow the equity fundraise.
In February, Aditya Birla Group Chairperson Kumar Mangalam Birla said there were no plans to exit the struggling telecom business, while speaking at the launch of Grasim Industries Ltd.'s new paint business—Birla Opus. The group will continue to look for new investors in Vodafone Idea, he said.
The Rs 20,000-crore fundraising initiative, announced on Feb. 27, was initially seen as a setback by investors, leading to a 14% decline in shares the day after the announcement, despite analysts viewing it as a positive step for the company. The shares are still down 0.4% since then.
Shares of the telecom operator have declined 15% so far this year, as compared with the 2.1% rise in the benchmark S&P BSE Sensex.
The stock closed 0.82% higher at Rs 13.55 apiece on Wednesday, as compared with a 0.04% decline in the Sensex.
