Vodafone Idea intends to raise 2,458 crore rupees in equity

The plan to issue approximately 166 crore rupees fully paid-up equity shares in order to raise 2,458 crore rupees has been authorised by the board of directors of Vodafone Idea. The move is intended to improve the company's financial standing. The closing price of shares on the BSE was ₹14.80 per share, indicating a slight rise of 0.68%.

Nokia and Ericsson will hold stakes of 1.5% and 0.9% respectively in VIL. The Aditya Birla Group and UK’s Vodafone Group Plc, as promoters, will maintain holdings of 22.8% and 14.5% respectively, while the government will retain a 23.2% stake. The public will hold the remaining 37.1%.

With this latest equity raise, Vodafone Idea has garnered approximately Rs 24,000 crore in recent months. The company is also actively seeking debt funding of Rs 25,000 crore from lenders.

According to Vodafone Idea, the preferential allotment to Nokia and Ericsson underscores their longstanding partnership as key suppliers of network equipment. It aims to settle a portion of their outstanding dues and strengthen its capital expenditure for developing high-quality 4G and 5G networks, contributing to India’s digital transformation.

Over the past five years, VIL has raised Rs 30,000 crore, with more than 75% of these funds coming from its two promoter groups. The latest funding round has also seen an investment of over Rs 2,000 crore from the Aditya Birla Group.

In terms of stock performance, Vodafone Idea shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 21.81% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 15.70%, indicating a strong upward trend.