Vodafone Idea (Vi) has approved the first tranche of allotment of 41,52,02,701 equity shares to Nokia Solutions and Networks India Pvt Ltd (25,67,56,756 Equity Shares) and Ericsson India Pvt Ltd (15,84,45,945 Equity Shares) via a preferential issue.
The issue price is ₹14.80 per share, including a premium of ₹4.80 per equity share. This move clears a portion of their pending dues and strengthens Vi's capital base. Following this allotment, Vi's paid-up share capital stands at ₹684,540,864,730, comprising 68,454,086,473 equity shares with a face value of ₹10 each.
Specifically, Vi allotted 25 crore shares to Nokia and 15 crore shares to Ericsson, resulting in a total value of ₹650 crore. This move likely strengthens the partnerships between these companies in the telecommunications sector.
This is said to be the first tranche of allotment of shares to Nokia and Ericsson. In June, it was reported that Vi aims to raise Rs 2,458 crore through a share sale to these two companies. Nokia will acquire a 1.5% stake in Vi for Rs 1,520 crore and Ericsson will obtain a 0.9% stake for Rs 938 crore. The shares will be allocated on a preferential basis and come with a six-month lock-in period.
By allotting shares to Nokia and Ericsson, Vi strengthens its capital base. This capital infusion can enhance Vi's financial stability and operational capabilities. The funds raised through this issue can be used to repay debt or meet other financial obligations. Reducing debt improves Vi's financial health.
The share allotment reinforces Vi's partnerships with Nokia and Ericsson. These companies play crucial roles in Vi's network infrastructure and technology solutions.
Investors and stakeholders may view this move positively, signaling Vi's commitment to improving its financial position and operational efficiency.
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