Overview
- Shareholders approved the preferential allotment of up to 430 crore convertible warrants at Rs 11 each to Suryaja Investments, an Aditya Birla Group entity, in a vote taken at Thursday's extraordinary general meeting.
- Vodafone Idea said about Rs 3,000 crore of the proceeds will repay loans taken for past capital expenditure and the remaining funds will be used for new network capital expenditure.
- The warrants will be issued and paid in tranches, with proceeds due within 18 months and the company indicating the formal allotment process would be completed within about 15 days of the resolution.
- Post-issue shareholdings will shift with the Aditya Birla Group rising to roughly 13.02 percent, Vodafone Group’s stake slipping to about 15.46 percent, and overall promoter holding increasing to 28.48 percent.
- The market reacted positively with shares up roughly 6 percent and chairman Kumar Mangalam Birla saying the company will focus on execution, though Vodafone Idea still faces large outstanding spectrum and payment liabilities that will shape its recovery.