Voda Idea surges 7%; board to consider proposal to raise funds today

Shares of Vodafone Idea (Vi) surged 7 per cent to Rs 11.17 on the BSE in Thursday’s intra-day trade in an otherwise slippery market ahead of the board meeting today to consider fund raising. The stock of telecom services provider quoted higher for the fourth straight day, and has rallied 16 per cent during the period. The stock had hit a 52-week high of Rs 16.79 on December 10, 2021.

At 01:50 pm; Vi traded 6 per cent higher at Rs 11.02, as compared to 0.14 per cent decline on the S&P BSE Sensex. A combined 324 million equity shares changed hands at the counter on the NSE and BSE.

On Friday, February 25, 2022, Vi informed the stock exchanges that the meeting of the board of directors of the company is scheduled on March 3, 2022 to consider and approve proposals for raising of funds.

The company said the board will evaluate any and all proposals for raising of funds in one or more tranches by way of preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and / or combination thereof as may be considered appropriate.

Last week, the Vodafone Group (Vodafone) sold a 2.4 per cent stake in Indus Towers through a block deal, raising Rs 1,442 crore. It will also sell another 4.7 per cent stake to Bharti Airtel in the Tower unit. The proceeds from these sales are set to be infused into Vi.

Vodafone and the Aditya Birla Group (ABG), the promoters of Vi, are committed to support Vi in its efforts to strengthen its balance sheet. The first step in this process included the conversion of US $2.1bn of AGR and spectrum interest into equity, which will make the Indian Government the largest shareholder of Vi.

Vodafone and ABG intend to contribute towards an issue of equity shares by Vi once the terms of such a capital raise have been evaluated and decided by the board of directors of Vi, Vodafone said on February 23.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor