New Delhi, April 6 (IANS): The board of directors of Vodafone Idea on Saturday approved a preferential issue of shares to an Aditya Birla Group entity to the tune of Rs 2,075 crores.

The board approved the issuance of upto 1,395,427,034 Equity Shares of face value of Rs 10 each at an issue price of Rs 14.87 per equity share (including a premium of Rs 4.87 per equity share), aggregating to Rs 2,075 crores to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis.

The relevant date, in terms of the provision of ICDR Regulations for determining the floor price of the Preferential Issue, is April 8.

The Board also approved an increase in the authorised share capital of the Company from the existing Rs 75,000 crores (divided into Rs 70,000 crore equity share capital and Rs 5,000 crore preference share capital) to Rs 1,00,000 crores (divided into Rs 95,000 crore equity share capital and Rs 5,000 crore preference share capital).

The Board also approved the convening of an extraordinary general meeting of the Company on Wednesday, 8th May, 2024, to approve the above matters.

Earlier in February, the Board of Directors of Vodafone Idea approved a fundraise of up to Rs 20,000 crores via a combination of equity and or equity-linked instruments.

The company had said that the promoters would also participate in the proposed equity raise, as committed earlier.

In addition, the company remains actively engaged with its lenders for tying up the debt funding, which will follow the equity fundraise.

Through a combination of equity and debt, the Company plans to raise around Rs 45,000 Crores. The Company’s bank debt currently stands at less than Rs 4,500 crores. The equity and debt fundraising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion.