Vodafone Idea has announced that its board has approved raising up to Rs 2,075 crore from Oriana Investments, an entity of promoter Aditya Birla Group, through a preferential share issue.
In a regulatory filing, Vodafone Idea informed the exchanges that its board has approved the allotment of 139.54 crore equity shares to Oriana Investments Pte Limited.
The equity shares allotted are at a face value of Rs 10 at an issue price of Rs 14.87 per equity share (including a premium of Rs. 4.87 per equity share), aggregating to Rs 2,075 crore, on a preferential basis.
Also read: Nomura upgrades Vodafone Idea to neutral, ups target price to Rs 15 a share
Post the allotment of equity shares in the offer, the paid-up equity share capital of the company stands increased from Rs 66,483.45 crore to Rs 67,878.88 crore.
Vodafone Idea recently raised around 18,000 crore through a follow-on public offer that closed on April 22. The FPO was part of the debt-laden telecom operator's broader plan to raise Rs 45,000 crore through debt and equity.
In Q4, Vodafone Idea reported a net loss of Rs 7,674 crore for Q4FY24 as against Rs 6,418.9 crore a year ago. Revenue from operations increased to Rs 10,606 crore from Rs 10,531 crore in the same quarter last fiscal. The company's average revenue per user (ARPU) grew marginally to Rs 146 from Rs 145 in the previous fiscal.
Brokerage Nomura recently upgraded Vodafone Idea Ltd to neutral from reduce and increased target price to Rs 15 a share, up 13.2 percent from previous close amid improved outlook following the conclusion of its fund raise and inline 4Q.
Shares of Vodafone Idea gained over 94 percent over the last one year. On May 21, the stock closed 2.26 percent higher at Rs 13.60.
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