Shares of Vodafone Idea gained in early trade on April 8 after the telecom operator received an approval from its board of directors to raise Rs 2,075 crore.
Vodafone Idea will raise up to Rs 2,075 crore from Oriana Investments, an Aditya Birla Group entity. The company will issue up to 139.5 crore equity shares to Oriana Investments, at an issue price of Rs 14.87 per share, subject to shareholder approval in a general meeting.
At 9.15am, Vodafone Idea shares were quoting Rs 13.5 on the NSE, higher by 1.5 percent than the previous session's closing price.
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The relevant date for determining the floor price is April 8, the telecom company said.
The company also stated that its board has approved an increase of the company's authorised share capital from the current Rs 75,000 crore - comprising Rs 70,000 crore of equity share capital and Rs 5,000 crore of preference share capital - to Rs 1 lakh crore.
Under the proposed change, the increased authorised share capital will be divided into Rs 95,000 crore of equity share capital and Rs 5,000 crore of preference share capital, the telecom company said.
In its regulatory filing, the company also stated that it will seek shareholders' approval at an extraordinary general meeting scheduled for May 8 regarding these proposals.
On April 3, Vodafone Idea shareholders approved raising of Rs 20,000 crore. The funds will allow the telecom major to expand its 4G network and roll out 5G services. Analysts suggest that these moves could help the company regain some of its competitive edge by offering a better experience to its users.
However, they said the fundraise is too small to have a meaningful impact on the company's market share and its overall debt position. The board has approved only a part of the initial amount of Rs 45,000 crore planned by the company.
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