Vodafone Idea To Raise ₹2,075 Crore From Oriana Investments

Vodafone Idea is taking steps to address its financial challenges by raising funds from promoters and the public. Company aims to raise a total of ₹45,000 crore through debt and equity.

Vodafone Idea has announced that its board has approved raising up to ₹2,075 by issuing preference shares to promoter Aditya Birla Group entity Oriana Investments. The telecom firm disclosed the decision in a regulatory filing to the stock exchanges.

According to the announcement, Vodafone Idea will allot 139.54 crore equity shares to Oriana Investments Pte Limited. These shares will be issued at a face value of ₹10 each, with an issue price of ₹14.87 per share, inclusive of a premium of ₹4.87 per share. The move aggregates to ₹2,075 crore.

Following this allotment, Vodafone Idea's paid-up equity share capital will increase from ₹66,483.45 crore to ₹67,878.88 crore.

The fundraising is part of Vodafone Idea’s wider plan to meet its financial burden. The company has recently raised approximately ₹18,000 crore through a follow-on public offer (FPO) which was concluded on April 22. This FPO is part of the company's larger plan to raise ₹45,000 crore through a combination of debt and equity.

In the fourth quarter of FY24, Vodafone Idea reported a net loss of ₹7,674 crore, compared to a net loss of ₹6,418.9 crore in the same quarter the previous year. Despite this, the company's revenue from operations saw a slight increase to ₹10,606 crore, up from ₹10,531 crore in the same period last fiscal. The average revenue per user (ARPU) also grew marginally to ₹146 from ₹145 in the previous fiscal year.

Vodafone Idea's stock performance has been noteworthy, with shares gaining over 94% in the past year. On May 22, the stock was trading at ₹13.75 per share 0.37% higher from previous close.