Telecom operator Vodafone Idea’s board is scheduled to hold a meeting today and discuss the proposal to raise funds.
No listed company of the Aditya Birla group is likely to participate in the fundraising plans and the promoters will fund the company, CNBC-TV18 said in a report, citing sources. Instead, the move will dilute the stakeholding of the existing shareowners, which includes the Union government, the Vodafone Group as well as the Aditya Birla Group.
The government is the largest shareholder in Vodafone Idea Limited, with holdings of 33 percent, followed by Kumar Mangalam Birla's Aditya Birla Group and Vodafone Plc, UK. The government feels that the "time has yet not come to do full or partial divestment" of its stake, especially as the funds that the company will get are to be used for the launch of 5G services and pare debt, the report added.
The company's stock has seen a surge in its share prices over the past few months as it prepares to take the final call on raising funds on February 27.
Shares of Vodafone Idea settled at Rs 16.10, down by 4.45 percent, on the National Stock Exchange on February 27. The shares of the telecommunication company witnessed gains in the past five sessions buoyed by the news of the fund raise plans.
In an exchange filing on February 22, Vodafone Idea said that it would evaluate proposals for raising capital in one or more tranches through rights issue, public offer, private placement, including preferential allotment or qualified institutional placement.
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