Vodafone Idea Limited (VIL), on Thursday, June 13, through an exchange filing announced that the Board of Directors of the company has approved a significant equity issuance to two key vendors, Nokia Solutions and Networks India Private Limited (Nokia) and Ericsson India Private Limited (Ericsson).
Key Details of the Equity Issuance
Amount Raised: Up to Rs 2,458 crore through the issuance of approximately 166 crore equity shares of face value of Rs 10 each.
Issue Price: Rs. 14.80 per share, representing a 35 per cent premium to the previous price.
Purpose: Clearing outstanding dues to Nokia and Ericsson.
Lock-in Period: Shares issued come with a 6-month lock-in period.
Partnerships with Nokia and Ericsson
Nokia and Ericsson, long-term suppliers of network equipment to Vodafone Idea, will participate in the issuance. Nokia will invest up to Rs 1,520 crore and Ericsson up to Rs 938 crore, pending shareholder approval.
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Impact on Ownership
Post the issuance, Nokia and Ericsson's ownership in VIL will be 1.5 per cent and 0.9 per cent respectively.
Fundraising
Apart from equity, the company has raised approximately Rs 24,000 crore through various financial instruments, including an earlier public offering and promoter investments. The company is also in discussions to secure Rs 25,000 crore in debt funding to support its growth initiatives.
Shares Performance
The shares of the company at 3:30 PM IST closed at Rs 16.08, down by 2.13 per cent.
