Vodafone Idea board approves raising ₹2,075 crore from Aditya Birla Group

The board of directors of Vodafone Idea has approved the proposal for raising about ₹2,075 crore by issuing over 139 crore shares of the company to Aditya Birla Group on a preferential basis.

In a stock exchange filing, the company said, “The board of directors has approved the issuance of up to 1,39,54,27,034 shares of face value of ₹10 each at an issue price of ₹14.87 per equity share (including a premium of ₹4.87 per equity share), aggregating to ₹2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis.”

Vodafone Idea said that its board also approved an increase in its authorised share capital from existing ₹75,000 crore (divided into ₹70,000 crore equity share capital and ₹5,000 crore preference share capital) to ₹1,00,000 crore (divided into ₹95,000 crore equity share capital and ₹5,000 crore preference share capital).

On Monday’s morning trading, Vodafone Idea shares declined around 3% on the NSE. The stock opened at ₹13.90 against its previous close of ₹13.3 and soon fell 2.6% to the level of ₹12.95 apiece.

Vodafone Idea shares have been in the red for the last three consecutive sessions. It hit its 52-week high of ₹18.40 on February 23 this year and has seen some profit booking thereafter. As per its previous session’s close of ₹13.30, the stock has declined about 28% from its 52-week high level.

However, the stock is up by as much as 122% from its 52-week low level of ₹6 which it hit on April 20 last year.

On a monthly scale, Vodafone Idea share price has been in the red since January this year. The stock fell over 10% in January, nearly 5% in February and around 3% in March. In April so far, the stock has dropped nearly 1%.