Vodafone Idea to Issue Shares Worth Rs 2458 Crore to Ericsson India and Nokia Solutions
Vodafone Idea approves preferential allotment of shares to Ericsson India and Nokia Solutions, worth Rs 2458 crore.
Vodafone IdeaEricsson IndiaNokia SolutionsTelecomIndiaReal EstateJun 14, 2024
The transaction involves the issuance of up to 166.08 crore fully paid-up equity shares of face value of Rs 10 each in one or more tranches. Of this, up to 102.70 crore equity shares will be issued to Nokia Solutions and Networks India Private Limited, a non-promoter of the company, at an issue price of Rs 14.80 per equity share, amounting to Rs 1520 crore.
Ericsson India Private Limited, a non-promoter, will be issued up to 63.37 crore equity shares of face value of Rs 10 each at an issue price of Rs 14.80 per equity share, amounting to Rs 938 crore.
The board has also approved the convening of an extraordinary general meeting of the company on July 10, 2024, to approve the above matters.
Nokia and Ericsson both have a long-term partnership with VIL, as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues. It further bolsters VIL's capex rollout for building a top-quality 4G and 5G network to contribute towards India's digital transformation.
Vodafone Idea Limited (VIL) is an Indian telecom operator that provides a range of services, including voice, data, and digital services. The company is a merger of Vodafone India and Idea Cellular.
Nokia Solutions and Networks India Private Limited is a leading provider of network infrastructure and services.
Ericsson India Private Limited is a leading provider of network infrastructure and services.
Vodafone Idea Limited is a leading Indian telecom operator that provides a range of services, including voice, data, and digital services. The company is a merger of Vodafone India and Idea Cellular.
Nokia Solutions and Networks India Private Limited is a leading provider of network infrastructure and services.
Ericsson India Private Limited is a leading provider of network infrastructure and services.
Frequently Asked Questions
What is the value of shares to be issued by Vodafone Idea?
The value of shares to be issued by Vodafone Idea is up to Rs 2458 crore.
Who are the recipients of the shares?
The recipients of the shares are Ericsson India and Nokia Solutions and Networks India.
What is the purpose of the preferential allotment?
The preferential allotment will enable VIL to clear part of their outstanding dues and further bolster their capex rollout for building a top-quality 4G and 5G network.
What is the shareholding of Nokia and Ericsson in VIL after the preferential allotment?
The shareholding of Nokia and Ericsson in VIL will be 1.5% and 0.9% respectively after the preferential allotment.
What is the current share price of Vodafone Idea?
The current share price of Vodafone Idea is Rs 16.07 on BSE.
Related News Articles
Falling Inflation Sparks Hope for September Rate Cut: 3 Stocks to Buy
Cooler-than-expected CPI figures hint at a potential September rate cut, benefiting Real Estate, retail, and dividend stocks.
Puravankara Expands Bengaluru Footprint with 7-Acre Land Acquisition
Puravankara Limited acquires 7.26-acre land parcel in Hebbagodi, Bengaluru, to develop high-end luxury project with potential GDV of over Rs 900 crore.
Warehousing Takes Center Stage in Indian Real Estate Investments for Q1 FY25
India's real estate market witnesses a significant shift in investment focus, with warehousing emerging as the top sector, attracting USD 1.5 billion in investments.
hBits Seeks to Revolutionize Real Estate Investment with SM REIT Licence
hBits applies for Small and Medium Real Estate Investment Trust (SM REIT) licence to expand investment opportunities in Indian real estate
ED Raids Offices and Residences of 'Z' Estates Directors in Odisha: MD Tapan Mohanty Issues Clarification
Bhubaneswar: The Enforcement Directorate (ED) conducted extensive raids on the offices and residences of 'Z' Estates directors in Odisha. The company's Managing Director, Tapan Mohanty, has since issued a statement to clarify the situation.
Rajiv Bajaj’s Rishabh Family Trust Acquires Land in Pune for Rs 72 Crore
The Rishabh Family Trust, headed by Rajiv Bajaj, has made a significant real estate investment by purchasing a 4,667.30 sq meter (approximately 1.15 acres) plot in Pune, along with a bungalow and an outhouse.