Vodafone Idea gets board approval to raise Rs 436 croreÂ

Vodafone Idea's board met on 22nd June 2022 and approved the plan to raise a fund of Rs 436 crore from the parent company, Vodafone Group entity in the exchange of 42.76 lakh equity shares or warrants that are convertible into equity shares.

In a regulatory filing, VI noted: "approved raising of funds aggregating up to Rs 436.21 crore by way of issuance of either: (a) up to 42,76,56,421 equity shares of the face value of Rs 10 each; or (b) up to 42,76,56,421 warrants convertible into equity shares, to Euro Pacific Securities Ltd (a Vodafone Group entity and promoter of the company), on a preferential basis."

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The issue price for the funds raised will be Rs.10.20, at a premium of Rs. 0.20 per share or per warrant. 100% of the issue price will be paid up-front at the time of subscription. Each warrant would be converted into 1 equity share and the rights attached can be exercised at any time within a period of 18 months from the allotment date.

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Vodafone Idea, from being on the verge of bankruptcy, has been trying to regain its market share by raising capital from investors in order to repay its debt due to the government.

Even though VI was able to turn around the bankruptcy situation for a while, the continued loss of subscribers, amid the tariff rate hike, is still worse.

VI's stock opened at Rs. 8.60 but due to mixed global conditions, the stock is trading at Rs. 8.45, down by 0.58%.

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