Vodafone Idea Ltd has approved the allotment of 430 crore warrants valued at Rs 1,182.5 crore to Suryaja Investments Pte. Ltd., an Aditya Birla Group firm and a promoter group entity of the telecom operator, under its preferential issue aimed at raising funds, according to an exchange filing on Monday.
The company's capital raising committee approved the allotment on Monday, following approval from the board of directors and shareholders for the issuance of warrants. The warrants have been issued at Rs 11 per warrant, with Suryaja Investments paying 25% of the issue price upfront, amounting to Rs 2.75 per warrant.
Each warrant can be converted into one fully paid-up equity share of Vodafone Idea with a face value of Rs 10 and a premium of Re 1. The conversion can be exercised in one or more tranches over 18 months from the date of allotment, after payment of the remaining 75% amount. The allotment does not immediately increase the company's paid-up equity share capital as the issue involves warrants.
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The fundraising move comes as Vodafone Idea continues efforts to strengthen its financial position. The telecom operator recently reported a net profit of Rs 51,970 crore in Q4 FY26, reversing a loss of Rs 5,286 crore in the previous quarter, helped partly by a one-time gain from the reassessment of adjusted gross revenue.
The company's average revenue per user rose to Rs 190, while revenue from operations stood at Rs 11,332 crore. Earnings before interest, taxes, depreciation, and amortization increased to Rs 4,889 crore, with the margin improving to 43.1% during the quarter.
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