The promoters of Vodafone Idea have invested Rs 17,920 crore into the telecom operator through the rights issue, increasing their stake marginally to 71.57 percent from 71.33 percent.
UK-based Vodafone Group and India’s Aditya Birla Group are the promoters of Vodafone Idea. The press statement did not reveal the specific equity stake of Vodafone Group and Aditya Birla Group in Vodafone Idea.
“The closure of rights issue is a clear indication of the investors’ belief in our post-merger strategy and our ability to leverage the growth opportunities offered by the sector. We are progressing well on integration and are well on track to deliver our synergy targets,” Balesh Sharma, CEO at Vodafone Idea, said.
Vodafone Idea is making huge investments in order to improve broadband coverage and capacity. The strategy of Vodafone Idea is to enhance network experience to its customers as well as enhancing its ability to win new broadband customers.
Vodafone Idea’s rights issue, the largest in the country, had opened on April 10 and closed on April 24. It was over-subscribed by a little over 100 percent and had crossed Rs 25,000 crore in value terms.
The promoters committed to infuse up to Rs 18,250 crore. The issue comprised up to 2,000 crore shares at Rs 12.5 a share for shareholders of record date April 2, 2019.
The rights issue received support from both existing shareholders and other investors, with participation from both domestic and foreign public shareholders. The rights issue was oversubscribed by about 1.08 times and the public participation was about 1.2 times.
“This funding along with the monetisation of our stake in Indus Towers will allow us to make the required investments in the business to achieve our strategic goals,” Akshaya Moondra, CFO at Vodafone Idea, said.
The new shares of Vodafone Idea are expected to be listed on the BSE and NSE on or around May 10.
Kotak Mahindra Capital Company, DSP Merrill Lynch, Morgan Stanley India Company, HDFC Bank and SBI Capital Markets were the lead managers to the rights issue.
Optical fibre business
Meanwhile, Vodafone Idea said on Saturday it will seek its shareholders’ approval on June 6 to transfer optical fibre assets to a wholly-owned subsidiary, Vodafone Towers.
The company has proposed to hive off its telecom fibre infrastructure to Vodafone Towers before monetising it and approached the National Company Law Tribunal Ahmedabad on April 11, 2019, for its approval.
Vodafone Idea has received valuation of around Rs 15,000 crore for its around 1.56 lakh kilometre long telecom fibre assets, according to media reports.
