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Rs 14,500 crore fundraise proposal approved by VIL shareholders

Shareholders of Vodafone Idea have approved a proposal to raise Rs 14,500 crore, the debt-ridden telecom operator said in a filing on Saturday.

Shareholders approved the proposal at the extraordinary general meeting held on Saturday, the filing said.

Vodafone Idea (VIL) had placed special resolution of issue of equity shares worth Rs 4,500 crore to the group firms of promoters Vodafone and Aditya Birla Group for transaction at the EGM.

As part of its fundraising, VIL had also sought shareholders’ approval to raise Rs 10,000 crore through sale of equity or through a mix of ADR, GDR and FCCBs.

Promoter firm Vodafone plans to infuse up to Rs 3,375 crore into debt-ridden Vodafone Idea Ltd. Besides, Aditya Birla Group plans to pump in up to Rs 1,125 crore.

Vodafone’s group firm Euro Pacific Securities and Prime Metals will subscribe to 253.75 crore equity shares. This will be 75 per cent of the total equity shares to be issued by the company on preferential basis, indicating a contribution of around Rs 3,374.9 crore from the British telecom major.

Aditya Birla Group firm Oriana Investments Pte will subscribe to 84.58 crore equity shares which is about 25 per cent of the preferential shares of VIL as part of the fund raise, implying a contribution of Rs 1,125 crore.

Currently, Birlas own more than 27 per cent stake in VIL while Vodafone Plc holds over 44 per cent shareholding in VIL.

VIL sought shareholders’ nod to increase the authorised share capital to Rs 75,000 crore, divided into 7,000 crore equity shares of Rs 10 each and 500 crore preference share of Rs 10 each.

Telecom service providers, VIL in particular, got a shot in the arm with the government last year approving a blockbuster relief package that included a four-year break for companies from paying statutory dues, permssion to share scarce airwaves and 100 per cent foreign investment through the automatic route. PTI

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