Vodafone Idea Gets Shareholders Approval To Increase Share Capital To Rs 50,000 Crore

Vodafone Idea on Wednesday said it has received shareholders’ approval to raise its authorised share capital to Rs 50,000 crore.

“The members have approved increase in the authorised share capital of the company from existing Rs 30,293 crore to Rs 50,000 crore by amending clause V of the memorandum of association,” Vodafone Idea said in a filing to the Bombay Stock Exchange.

The proposal to increase authorised share capital, which was approved by over 92 per cent shareholders, will provide headroom for the company to infuse additional funds. The 24th annual general meeting (AGM) of the company was held on August 27.

During the June quarter, the company raised Rs 25,000 crore through rights issue. The plan to increase the share capital follows rights issue which led to the issue of additional shares by the company.

Among other major announcements, the shareholders also approved the company’s proposed transactions with Bharti Infratel and Indus Towers to monetise 11.15 per cent stake in Indus Tower. Proceeds from the deal will be used to stave off immense financial pressure. Indus Tower is in the final stage of merging its business with Bharti Infratel.

Vodafone Idea, which was born out of a merger between UK’s Vodafone India and Aditya Birla Group’s Idea Cellular,  is expected to raise about Rs 5,500-6,000 crore from the sale of its stake in Indus Towers.

The Vodafone Idea stock continued its losing streak for the third straight session on Wednesday, falling 5.47 per cent to close at Rs 5.01 apiece on the BSE.―Business Today