Vodafone Idea shares: Rs 1,183 cr raised via warrants issued to Aditya Birla Group entity

Vodafone Idea Ltd (VIL) shares are in focus on Tuesday after the telecom operator said its board approved the allotment of 430 crore warrants to Suryaja Investments Pte Ltd, an Aditya Birla Group entity and member of the promoter group, at its meeting held on June 22.

The warrants were issued for cash at Rs 11 apiece against the receipt of 25 per cent of the issue price, or Rs 2.75 per warrant, aggregating to Rs 1,182.50 crore. VIL closed at Rs 14.79 per share on Monday, down 0.13 per cent. The scrip has climbed 27.50 per cent in 2026 so far.

Earlier this month, Vodafone Idea shareholders approved a fund raise of up to Rs 4,730 crore at an extraordinary general meeting. Vodafone Idea had on May 19, while intimating stock exchanges about the EGM, suggested that the allotment of warrants would be completed within a period of 15 days from the date of passing of the resolution by the shareholders.

Vodafone Idea said the preferential issue is comprised of convertible warrants, with the remaining issue proceeds to be received in tranches within 18 months from the date of allotment.

Of the total proceeds, Rs 3,000 crore will be used to repay loans taken for capital expenditure on network expansion by the end of December 2027. The company will also utilise the funds for capital expenditure towards expanding its network infrastructure.

Vodafone Idea on Monday said there will be no increase in its paid-up equity share capital at this stage as the allotment is only of warrants.

Following the Rs 4,730 crore allotment, the Aditya Birla Group's stake in Vodafone Idea will rise to 13.02 per cent, or 14,66,70,33,322 shares, from 9.57 per cent, or 10,36,70,33,322 shares. The Vodafone Group's holding will decline to 15.46 per cent from 16.07 per cent. The combined promoter stake will increase to 28.48 per cent from 25.64 per cent, while the government's holding is expected to decline to 47.13 per cent from 49 per cent.