In the wake of the recent development of events, the shareholders of Vodafone Idea have cleared the previously raised proposal of raising Rs 14,500 crore. The news of the approval was informed by the cash-strapped telecom operator on Saturday during a filing.
VIL had earlier raised the proposal to raise Rs 14,500 crore from its primary promoters – UK’s Vodafone Group as well as Aditya Birla Group (ABG) along with other external investors. Let’s find out more.
A couple of weeks ago, the board of VIL announced the proposal set to raise Rs 4,500 crore, which is approximately $600 million through preferential shares issued at Rs 13.30 per share to its promoters as well related companies.
Out of the said Rs 4,500 crore, Vodafone Idea will have a share of Rs 3,375 crore, which is nearly $450 million, which the company will pay via the funds it raised by the recent selling of its stake in Indus Towers. Aditya Birla Group is reportedly going to put in Rs 1,125 crore.
Telecom operators, particularly, Vodafone Idea, got a bit of relief as the government announced a blockbuster relief package that included a four-year break for companies from paying statutory dues along with permission to share scarce airwaves and 100% foreign investment through the automatic route.