Last Updated:
Vodafone Group intends to promote a 3% stake in Indus Towers, aiming to make use of the proceeds to settle a debt of USD 101 million
Vodafone Fundraise Plan
Vodafone Idea’s board, on December 9, accredited the issuance of as much as 176 crore shares on a preferential foundation to lift Rs 1,980 crore. The shares shall be issued at Rs 11.28 every, comprising a face worth of Rs 10 and a premium of Rs 1.28 per share.
“A complete of as much as 1,755,319,148 fairness shares shall be issued for an mixture consideration of Rs 1,980 crore,” the corporate said in a inventory change submitting.
The preferential allotment contains Rs 1,280 crore value of shares to Omega Telecom and Rs 700 crore to Usha Martin Telematics, each entities of the Vodafone Group.
The concern worth displays a virtually 40% premium, as Vodafone Idea’s shares closed flat at Rs 8.11 on December 9.
Meanwhile, Vodafone Group Plc, based mostly within the UK, has bought its total 3% stake in Indus Towers by means of a sequence of block offers with main international funding banks, various asset managers, massive worldwide fund homes, hedge funds, native mutual funds, and pension funds, elevating roughly Rs 2,801.7 crore. This marks Vodafone’s full exit from the Indian tower firm, which is now a subsidiary of Bharti Airtel.
Vodafone Group holds a 22.56% stake in Vodafone Idea, whereas the Aditya Birla Group owns 14.76%, and the federal government holds 23.15%.
Vodafone Idea introduced that after settling its debt, the remaining funds shall be used for the issuance of recent fairness shares, with the precise phrases of the capital increase to be determined by the Board.
The telecom firm’s plan to lift Rs 2,000 crore by means of fairness or convertible securities on a preferential foundation goals to assist settle its dues with Indus Towers. Analysts view this transfer as a possible catalyst for strengthening its negotiations with lenders for added debt funding, offering essential monetary help to the corporate.
Vodafone Idea additionally indicated that tariff hikes are anticipated sooner or later, though there’s restricted scope for growing entry-level tariffs. Instead, worth will increase will probably goal greater consumption ranges.
In November, it was reported that the federal government had accredited the waiver of financial institution ensures for telecom operators regarding spectrum bought earlier than 2022. This choice is seen as a reduction for Vodafone Idea, which owes over Rs 24,700 crore in financial institution ensures to the federal government.
