Vodafone Idea to raise Rs 615 crore through preferential shares at Rs 14.80/share

New Delhi [India], July 19 (ANI): Vodafone Idea approved the allotment of more than 40 crore shares on a preferential basis to Nokia Solutions and Networks India and to Ericsson India, the company informed the exchange in a filing.

The company stated that this preferential allotment is in accordance with SEBI’s regulations which totals around Rs 615 crore and represents a strategic move to enhance the company’s capital base.

According to the statement by the company, the breakdown includes around 25 crore equity shares to Nokia Solutions and Networks India Pvt. and over 15 crore equity shares to Ericsson India Pvt.

The issue price per equity share was set at Rs. 14.80, including a premium of Rs. 4.80 per share at a face value of Rs 10 per share.

“The Capital Raising Committee of the Board (“Capital Raising Committee”) has, at its meeting, approved the second tranche of allotment of 41,52,02,701 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), to Nokia Solutions and Networks India Private Limited (25,67,56,756 Equity Shares) and Ericsson India Private Limited (15,84,45,945 Equity Shares), aggregating to Rs. 614.5 crores, on a preferential basis” said the company.

Recently, Vodafone Idea (VIL) added 0.8 million mobile broadband (MBB) subscribers in May, but the company continued to see declines in both overall and active subscriber bases, losing 0.9 million and 1.7 million subscribers, respectively.

The shares of Vodafone Idea closed at Rs 16.32 after a decline of more than 2 per cent on Thursday.