Vodafone Idea shares up 6% as shareholders okay Rs 4,730 cr promoter-led infusion; key details

Shares of Vodafone Idea Ltd climbed 6 per cent in Friday's trade after shareholders at an extraordinary general meeting (EGM) approved the allotment of up to 430 crore warrants for a cash at a price of Rs 11 per warrant, convertible into, or exchangeable for, one fully paid-up equity share of Vodafone Idea, aggregating up to Rs 4,730 crore. The warrants will be allotted to Suryaja Investments, an Aditya Birla Group entity and a member of the promoter group, by way of preferential issue, from time to time in one or more tranches.

Following the development, the VIL stock rose 5.64 per cent to hit a high of Rs 14.98 apiece on BSE, taking its one-month rise to 25 per cent. 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.

A total of Rs 3,000 crore of the proceeds will be utilised by repaying of loans availed for capital expenditure for expansion of network infrastructure by end-December 2027. VIL will also incur capital expenditure for expansion of network infrastructure. 

Post the issue, the stake of Aditya Birla group will rise to 13.02 per cent (14,66,70,33,322 shares) in Vodafone Idea compared with 9.57 per cent stake at present (10,36,70,33,322 shares). 

Vodafone Group's stake in the telecom operator will fall to 15.46 per cent from 16.07 per cent at present. Overall, promoters will own 28.48 per cent stake the post issue against 25.64 per cent, with government stake in Vodafone likely to fall to 47.13 per cent from 49 per cent.

As the preferential issue is of convertible warrants and the issue proceeds will be received in tranches by the Company within 18 months from the date of allotment of the warrants. 

"Remote e-voting had commenced at 9:00 a.m. (IST) on Monday, 8 June 2026 and ended at 5:00 p.m. (IST) on Wednesday, 10 June 2026. Members who were present at the EGM and who had not cast their votes earlier during the remote e-voting period were provided an opportunity to cast their votes at the EGM," Vodafone Idea said on Thusrday.