Vodafone Idea to raise ₹2,075 crore from Aditya Birla Group
What's the story
Vodafone Idea has unveiled plans to secure a funding of up to ₹2,075 crore from Oriana Investments, a subsidiary of the Aditya Birla Group. The telecom giant's board has given its approval for this funding through a preferential share issue. As per regulatory filings, Vodafone Idea will allot 139.54 crore equity shares to Oriana Investments at an issue price of ₹14.87 per share.
Share allotment
Equity share details and impact on Vodafone Idea's capital
The equity shares to be allotted to Oriana Investments are set at a face value of ₹10, with an additional premium of ₹4.87 per share. This arrangement will aggregate to ₹2,075 crore on a preferential basis. Following this allotment, the paid-up equity share capital of Vodafone Idea will see an increase from ₹66,483.45 crore to ₹67,878.88 crore.
Financial moves
Vodafone Idea's recent fundraising and debt strategy
This funding announcement follows Vodafone Idea's recent successful raising of around ₹18,000 crore through a follow-on public offer that concluded on April 22. This public offer was part of the telecom operator's broader strategy to raise ₹45,000 crore through debt and equity to manage its significant debt burden. The company has been grappling with financial challenges, as evidenced by its Q4 report.
Fiscal report
Vodafone Idea's Q4 financial performance
Vodafone Idea's Q4 report revealed a net loss of ₹7,674 crore for Q4FY24, compared to ₹6,418.9 crore in the previous year. Despite this loss, the company saw a slight increase in its revenue from operations - from ₹10,531 crore in the last fiscal year to ₹10,606 crore in Q4FY24. The average revenue per user (ARPU) also showed marginal growth from ₹145 to ₹146 during the same period.