Vodafone Idea To Offer Rs 2,458 Crore Stake for Debt Clearance and 5G Launch

Vodafone Idea is one of the leading telecom service providers in India. The company’s business services include voice business/ services, broadband services, content services, enterprise services, and other VAS offerings like entertainment, SMS, and Utility. It is the third largest telecom operator in India. 

Vi to sell Rs.2,458 crore stake

On June 13, Vodafone Idea announced that its board has approved the issuance of approximately 166 crore shares at a price of Rs.14.80 per share to raise up to Rs 2,458 crore on a preferential basis. According to a regulatory filing by the telecom company, Vodafone Idea plans to allocate 102.7 crore shares, amounting to Rs.1,520 crore, to Nokia Solutions and Networks India Private Limited. Additionally, the company will issue 63.37 crore shares, totaling Rs.938 crore, to Ericsson India Private Limited. 

This strategic move aims to strengthen the company’s financial position. In order to finalize the above mentioned matters, Vodafone Idea’s board has also approved the convening of an extraordinary general meeting on July 10. During this meeting, shareholders will be asked to approve the proposed share issuance and related matters, as part of the company’s efforts to secure necessary funding and strengthen its market position.

Vi Shareholding pattern post stake sale

Post this preferential issuance, the shareholding of Nokia and Ericsson in the Vodafone Idea will be 1.5% and 0.9%.

Conclusion: Vodafone Idea’s strategic issuance of 166 crore shares aims to raise Rs.2,458 crore, involving selling stakes to  Nokia Solutions and Networks India Private Limited and Ericsson India Private Limited. This move is designed to enhance the company’s financial stability. The final approval of these measures will be sought at an extraordinary general meeting on July 10, marking a significant step in Vodafone Idea’s efforts to secure necessary funding and strengthen its market presence. The shares of Vodafone Idea are trading flat today at Rs.16.15 per share.

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.