Vodafone Idea (Vi) has approved the first tranche of allotment of equity shares via a preferential issue, totaling Rs 615 crore, to its two European network gear vendors, Nokia and Ericsson, to clear a portion of their pending dues.
In an exchange filing on Thursday, Vi stated, “The Capital Raising Committee of the board has, at its meeting held today (July 18), approved the first tranche of allotment of 41,52,02,701 equity shares of face value of Rs 10/- each at an issue price of Rs 14.80 per share (including a premium of Rs 4.80 per equity share), to Nokia Solutions and Networks India Pvt Ltd (25,67,56,756 Equity Shares) and Ericsson India Pvt Ltd (15,84,45,945 Equity Shares), vendors (non-promoters) of the company, aggregating Rs 615 crore, on a preferential basis.”
With this allotment, Vi’s paid-up share capital has increased to Rs 684,540,864,730, comprising 68,454,086,473 equity shares with a face value of Rs 10 each.
Last month, Vi had announced plans to raise up to Rs 2,458 crore through a preferential issue of equity shares to Nokia and Ericsson, aiming to clear part of their pending dues and pave the way for the telco’s 4G expansion and 5G rollout.
Nokia and Ericsson will participate for up to Rs 1,520 crore and Rs 938 crore respectively. Following the preferential issuance, the shareholding of Nokia and Ericsson in Vi will be 1.5% and 0.9% respectively. Vi shares closed 3.04% lower at Rs 16.28 on BSE Thursday.
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