Vodafone Idea (Vi), promoted by Aditya Birla Group and UK’s Vodafone, said its board approved raising Rs 436.21 crore from its UK parent at Rs 10.20 per unit. The decision comes as the cash-strapped company plans to invest further in its network and prepare for the upcoming 5G spectrum auctions.
The funds will be raised issuing either shares or warrants convertible to equity shares, the company said.
“The Board of Directors of Vodafone Idea Limited at its meeting held June 22, 2022, has, inter-alia, approved raising of funds aggregating upto Rs 436.21 crore by way of issuance of either: (a) upto 42,76,56,421 Equity Shares of the face value of Rs. 10/- each; or (b) upto 42,76,56,421 Warrants convertible into Equity Shares, to Euro Pacific Securities Ltd. (a Vodafone Group entity and promoter of the Company), on a preferential basis in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations). The relevant date, in terms of provision of ICDR Regulations for determining the floor price of the Preferential Issue, in either case, is June 15, 2022,” said Vi in an exchange filing on Wednesday.
If the funds are raised via equity shares, the issue price is expected to Rs 10.20 per unit, including a premium of Rs 0.20 per share; in case of warrants, the issue price is expected to be Rs 10.20.
Vodafone Idea also announced its decision to exercise its option to defer payment of AGR-related dues worth Rs 8,837 crores for a period of 4 years.
In a BSE, the telco informed that it received a letter from the Department of Telecommunications (DoT) dated June 15, 2022, wherein the regulator offered a moratorium of four years for all AGR-related dues upto Financial Year 2018-19 which were not included in the Supreme Court order dated September 1, 2020, which can be exercised within a period of 15 days i.e. by June 30, 2022.
The said DoT letter also provides the company an option for equity conversion of interest dues upfront for these AGR related dues for which a period of 90 days has been provided from the date of the said DoT Letter, the filing added.
“We wish to inform you that the Board of Directors of the Company at its meeting held today i.e. 22nd June, 2022, has approved the exercise of the option of deferment of the AGR-related dues by a period of four years with immediate effect, in accordance with the said DoT Letter. The amount of the AGR-related dues as stated in the said DoT Letter is Rs. 8,837 crores,” it further said.