Vi board approves plan to raise Rs 1,980 crore from promoter units

Omega Telecom Holdings and Usha Martin Telematics to hold nearly 3 per cent of Vi after issue

The board of Vodafone Idea (Vi) on Monday approved a proposal to raise Rs 1,980 crore from entities belonging to promoter Vodafone Group PLC through a preferential issue.

 

Vi will issue shares to Vodafone Group entities Omega Telecom Holdings and Usha Martin Telematics worth up to Rs 1,280 crore and Rs 700 crore, respectively, it said in an exchange filing on Monday. The issuance will involve 1.75 billion equity shares of face value Rs 10 each. The issue price will be Rs 11.28 per share. Vi has called an extraordinary general meeting (EGM) on January 7, 2025, to seek shareholder approval.

 

As of September 30, 2024, Omega Telecom Holdings held a 0.40 per cent stake in Vi, while Usha Martin's stake stood at 0.13 per cent. These will rise to 1.98 per cent and 1 per cent, respectively, after the share issue.

 

Last week, British telecom giant Vodafone PLC announced plans to liquidate its holdings in mobile tower infrastructure company Indus Towers, selling its remaining 3 per cent stake. Pegged at Rs 2,840 crore, the block deal has allowed Vodafone PLC to repay its outstanding dues of $101 million (about Rs 856 crore) and use the residual amount to pay outstanding dues of its Indian venture, Vodafone Idea. In June, Vodafone had sold 484.7 million shares or an 18 per cent stake in Indus Towers in block deals, raising Rs 15,300 crore.

 

Among the promoters in Vi, Vodafone Group holds a 22.56 per cent stake, while the Aditya Birla Group holds 14.76 per cent. The government has a 23.15 per cent stake.

 

Vi's total payment obligations to the government stood at Rs 2.12 trillion at the end of Q2FY25, including deferred spectrum payment obligations of Rs 1.41 trillion. The telco also owed an adjusted gross revenue (AGR) liability of Rs 70,320 crore to the government.

 

Vi has already raised Rs 24,000 crore of equity, including preferential shares worth Rs 2,458 crore to long-term vendors Nokia and Ericsson in July and the conversion of 1,440 optionally convertible debentures (OCDs) in March 2024 by ATC India (of the 1,600 OCDs issued). It made a preferential issue to promoters in May, close on the heels of its mega Rs 18,000 crore follow-on public offer in April 2024. The company is in active discussions with its lenders to raise debt funding to the tune of Rs 25,000 crore.