Telecom Giant Secures Fresh Funding to Strengthen Infrastructure
In a move to bolster its network capacity, leading telecommunications provider Vodafone Idea has approved the issuance of preference shares worth Rs. 2,458 crores to three of its key technology partners.
According to a regulatory filing, the telecom operator will allot approximately 102.7 crore shares valued at Rs. 1,520 crores to Nokia Solutions and Networks India Private Limited. It will also distribute 63.37 crore shares worth Rs. 938 crores to Ericsson India Private Limited.
The shares carrying a face value of Rs. 10 each will be issued at a price of Rs. 14.80 per equity, which includes a premium of Rs. 4.80. This capital will be infused through the allotment of equity shares with voting rights.
This fresh funding builds upon the Rs. 18,000 crores the company raised through a public offering earlier this year. A major portion of the capital is planned for network expansion including setting up new 4G and 5G sites as well as boosting the capacity of existing infrastructure.
Over the past five years, the telecom giant has amassed approximately Rs. 30,000 crores through various fundraising initiatives. An analysis reveals that more than 75% of this total came from its two main stakeholder groups. The latest round also saw a contribution of over Rs. 2,000 crores from Aditya Birla group which maintains a significant shareholding.
