The board also approved an increase in the authorised share capital
New Delhi: Debt-ridden telecom firm Vodafone Idea on Saturday said its board has approved raising of Rs2,075 crore from promoter Aditya Birla group and increasing its authorised share capital to Rs1 lakh crore.
The company will seek shareholders’ approval at an extraordinary general meeting on May 8 on the proposals, it said in a regulatory filing.
The Vodafone Idea board has approved “issuance of up to 1,395,427,034 equity shares of face value of Rs10 each at an issue price of Rs14.87 per equity share (including a premium of Rs4.87 per equity share), aggregating to Rs2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis,” the filing said.
The board also approved an increase in the authorised share capital of the company from existing Rs75,000 crore, divided into Rs70,000 crore equity share capital and Rs5,000 crore preference share capital, to Rs1 lakh crore, the filing said.
The increased authorised share capital of the company will be divided into Rs95,000 crore equity share capital and Rs5,000 crore preference share capital.
The approvals are part of the company’s plans to raise Rs20,000 crore of capital to fund its operations and lower its debt burden.
