Vodafone Idea Ltd., the telecom service provider, on Monday said that the board will meet on Thursday, June 13, to consider and evaluate proposals to issue either equity shares or convertible securities on a preferential basis to vendors.
Any such potential issue of shares to vendors may require approval from shareholders of the company.
This move comes just over a year after Vodafone Idea had issued Optionally Convertible Debentures (OCDs) worth ₹1,600 crore to ATC Telecom Infrastructure Pvt. Ltd. in February 2023.
Optionally Convertible Debentures are those instruments that can be converted into equity shares at a future date.
In March this year, ATC Telecom had requested the company to convert those OCDs worth ₹1,440 crore into equity shares. On April 26, ATC sold 144 crore shares, or 2.87% of the total equity in Vodafone Idea in a deal valued at ₹1,840 crore. Shares were sold at ₹12.78 apiece.
Since that transaction, Vodafone Idea's shares are up nearly 24%.
Vodafone Idea recently completed the largest Follow-on Public Offer (FPO) in India, raising ₹18,000 crore through the exercise. It also raised a sum of ₹2,075 crore from its promoters through a share issuance on a preferential basis. With this, it completed its equity fund raising exercise worth ₹20,000 crore.
Last month, brokerage firm UBS upgraded Vodafone Idea to "buy" from its previously upgraded rating of "neutral." The brokerage wrote in its note that the market is pricing in a tariff hike between 15% and 20% in the next 12-24 months.
Shares of Vodafone Idea ended little changed on Monday, at ₹15.81. The stock is still down 7% on a year-to-date basis.
Any such potential issue of shares to vendors may require approval from shareholders of the company.
This move comes just over a year after Vodafone Idea had issued Optionally Convertible Debentures (OCDs) worth ₹1,600 crore to ATC Telecom Infrastructure Pvt. Ltd. in February 2023.
Optionally Convertible Debentures are those instruments that can be converted into equity shares at a future date.
In March this year, ATC Telecom had requested the company to convert those OCDs worth ₹1,440 crore into equity shares. On April 26, ATC sold 144 crore shares, or 2.87% of the total equity in Vodafone Idea in a deal valued at ₹1,840 crore. Shares were sold at ₹12.78 apiece.
Since that transaction, Vodafone Idea's shares are up nearly 24%.
Vodafone Idea recently completed the largest Follow-on Public Offer (FPO) in India, raising ₹18,000 crore through the exercise. It also raised a sum of ₹2,075 crore from its promoters through a share issuance on a preferential basis. With this, it completed its equity fund raising exercise worth ₹20,000 crore.
Last month, brokerage firm UBS upgraded Vodafone Idea to "buy" from its previously upgraded rating of "neutral." The brokerage wrote in its note that the market is pricing in a tariff hike between 15% and 20% in the next 12-24 months.
Shares of Vodafone Idea ended little changed on Monday, at ₹15.81. The stock is still down 7% on a year-to-date basis.
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