Telecom firm Vodafone Idea board on December 9 approved issuance of up to 176 crore shares on preferential basis to raise Rs 1,980 crore.
The shares will be issued at Rs 11.28 apiece. "Up to 1,755,319,148 equity shares of face value of Rs 10 each at an issue price of Rs 11.28 per equity share (including a premium of Rs 1.28 per equity share) for an aggregate consideration of up to Rs 1,980 crore," said the company in a stock exchange filing.
The telecom firm's board approved preferential issue to to Omega Telecom for Rs 1,280 crore and to Usha Martin Telematics for Rs 700 crore, both Vodafone Group entities.
The issue price represents nearly 40% premium as Vodafone Idea shares on December 9 closed flat at Rs 8.11 apiece.
In Vodafone Idea, Vodafone Group holds a 22.56% stake, Aditya Birla Group 14.76% and the government has 23.15% stake.
The company had announced that after settling the debt, it intends to contribute the residual proceeds from the placing (after repayment of Vodafone's outstanding borrowings) towards an issue of new equity shares by Vi once the terms of such a capital raise have been evaluated and decided on by the Board of Directors of Vi.
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