Promoters bought 175,53,19,148 shares of this telecom stock under Rs 10; Government holds a 23.18 per cent stake
The company's majority of stake i.e., 23.15 per cent, is owned by the Government of India (Department of Investment and Public Asset Management).
Vodafone Idea Limited (VIL) has announced a significant step towards strengthening its financial position. The company's Board of Directors has approved the issuance of up to 175,53,19,148 equity shares to two of its key promoters. Omega Telecom Holdings Private Limited will invest up to Rs 1,280 crore, while Usha Martin Telematics Limited will invest up to Rs 700 crore through a preferential allotment. This move is expected to infuse approximately Rs 1,980 crore into the company.
The preferential allotment is subject to the approval of shareholders at an extraordinary general meeting scheduled for January 7, 2025. This capital infusion will provide VIL with much-needed financial flexibility to invest in network upgrades, technology advancements, and other strategic initiatives. The company aims to improve its customer experience and enhance its market position through these investments.
Earlier, the Union Cabinet's decision to waive bank guarantees (BG) for telecom operators on spectrum acquired before 2022 offers substantial relief to the industry. This move directly benefits companies like Vodafone Idea, which owed over Rs 24,700 crore in BGs. By eliminating this financial burden, the government aims to bolster the telecom sector's stability and encourage investment. Vodafone Idea, grappling with significant financial challenges, has been lobbying for the BG waiver. The company's recent failure to meet BG payment obligations underscores the urgency of this relief. With this decision, the government aims to create a conducive environment for the telecom industry's growth and development.
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About Vodafone Idea Ltd
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is amongst India’s leading telecom service providers. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms. The company holds a large spectrum portfolio including mid-band 5G spectrum in 17 circles and mm-Wave 5G spectrum in 16 circles. To support the growing demand for data and voice, the Company is committed to delivering delightful customer experiences and contributing towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow.
The Company is developing infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future-ready with innovative offerings, conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. The Company’s equity shares are listed on the National Stock Exchange (NSE) and the BSE in India.
The company has a market capitalization of over Rs 50,000 crore. The company's majority of stake i.e., 23.15 per cent, is owned by the Government of India (Department of Investment and Public Asset Management).
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Disclaimer: The article is for informational purposes only and not investment advice.