The board of Vodafone Idea (VIL) on Saturday approved a proposal to raise Rs 2,075 crore from the Aditya Birla group through a preferential allotment. This share issue is expected to be a precursor to the telco mobilising Rs 45,000 crore via equity and debt.
VIL said in a regulatory filing that it will issue up to 1,395,427,034 shares at an issue price of Rs 14.87 apiece, totalling Rs 2,075 crore, to Oriana Investments Pte Ltd. Oriana is an Aditya Birla Group entity forming part of the promoter group. The relevant date, in terms of provision of ICDR Regulations for determining the floor price of the preferential issue is April 8.
The board has also approved an increase in authorised share capital of the company from the existing Rs 75,000 crore (divided into Rs 70,000 crore equity share capital and Rs 5,000 crore preference share capital) to Rs 1,00,000 crore (divided into Rs 95,000 crore equity share capital and Rs 5,000 crore preference share capital).
While preference shares will be issued to the Aditya Birla group, it is still not clear when a similar issuance will be made to Vodafone.
In February, VIL had said that the promoters will also participate in the fund raise, as committed earlier.