Vodafone Idea to issue shares worth Rs 2,458 crore to Ericsson India, Nokia Solutions
Vodafone Idea preference share issue: The transaction will involve issuing of shares up to 1,66,08,10,804 or 166.08 crore fully paid-up equity shares of face value of Rs. 10/- each in one or more tranches.
- Jun 13, 2024,
- Updated Jun 13, 2024 5:26 PM IST
The board of telco Vodafone Idea on Thursday approved issuing of shares worth up to Rs 2,458 crore on a preferential basis. The shares will be issued to Ericsson India and Nokia Solutions and Networks India.
The transaction will involve issuing of shares up to 1,66,08,10,804 or 166.08 crore fully paid-up equity shares of face value of Rs. 10/- each in one or more tranches.
Of this, up to 1,02,70,27,024 or 102.70 crore equity shares each at an issue price of Rs 14.80 per equity share (including a premium of Rs 4.80 per equity share) will be issued to Nokia Solutions and Networks India Private Limited, a non-promoter of the company. The transaction will amount to Rs 1,520 crore.
Ericsson India Private Limited, a non-promoter will be issued up to 63,37,83,780 or 63.37 crore equity shares of face value of Rs 10/- each at an issue price of Rs. 14.80 per equity share (including a premium of Rs. 4.80 per equity share). The transaction will be worth Rs 938 crore .
The board also approved convening of an extraordinary general meeting of the company on Wednesday, 10 July 2024, inter-alia, to approve the above matters.
"Nokia and Ericsson both have a long-term partnership with VIL, as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues. It further bolsters VIL’s capex rollout for building a top quality 4G & 5G network to contribute towards India’s digital transformation. Post this preferential issuance, the shareholding of Nokia and Ericsson in the Company will be 1.5% and 0.9% respectively. The Promoter (ABG and Vodafone) shareholding will stand at 37.3% and shareholding of Government of India will stand at 23.2%, while the balance 37.1% will be public shareholding," said Vodafone Idea in a communication to bourses.
Shares of the telco ended 2.25% lower at Rs 16.07 on BSE. The share issue announcement was made after market hours on Thursday.
The board of telco Vodafone Idea on Thursday approved issuing of shares worth up to Rs 2,458 crore on a preferential basis. The shares will be issued to Ericsson India and Nokia Solutions and Networks India.
The transaction will involve issuing of shares up to 1,66,08,10,804 or 166.08 crore fully paid-up equity shares of face value of Rs. 10/- each in one or more tranches.
Of this, up to 1,02,70,27,024 or 102.70 crore equity shares each at an issue price of Rs 14.80 per equity share (including a premium of Rs 4.80 per equity share) will be issued to Nokia Solutions and Networks India Private Limited, a non-promoter of the company. The transaction will amount to Rs 1,520 crore.
Ericsson India Private Limited, a non-promoter will be issued up to 63,37,83,780 or 63.37 crore equity shares of face value of Rs 10/- each at an issue price of Rs. 14.80 per equity share (including a premium of Rs. 4.80 per equity share). The transaction will be worth Rs 938 crore .
The board also approved convening of an extraordinary general meeting of the company on Wednesday, 10 July 2024, inter-alia, to approve the above matters.
"Nokia and Ericsson both have a long-term partnership with VIL, as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues. It further bolsters VIL’s capex rollout for building a top quality 4G & 5G network to contribute towards India’s digital transformation. Post this preferential issuance, the shareholding of Nokia and Ericsson in the Company will be 1.5% and 0.9% respectively. The Promoter (ABG and Vodafone) shareholding will stand at 37.3% and shareholding of Government of India will stand at 23.2%, while the balance 37.1% will be public shareholding," said Vodafone Idea in a communication to bourses.
Shares of the telco ended 2.25% lower at Rs 16.07 on BSE. The share issue announcement was made after market hours on Thursday.