- By Aditya Pratap Singh
- Tue, 10 Dec 2024 09:17 AM (IST)
- Source:JND
Telecom operator Vodafone Idea said its board has authorized the issue of up to 175.53 crore shares on a preferential basis to two Vodafone Group companies to raise to Rs 1,980 crore. The debt-ridden telecom company has set the issue price at Rs 11.28 per equity share. The company said that December 6, 2024, is the relevant date for determining the floor price of the preferential issue.
The telecom company, which has been trailing its larger rivals Reliance Jio and Bharti Airtel in terms of subscriber numbers and revenue metrics, said an extraordinary general meeting of the company will be held on January 7, 2025, to approve the matter. Vodafone Group has a 22.56 per cent stake in Vodafone Idea (VIL), while the Aditya Birla Group holds a 14.76 per cent stake and the government has a 23.15 per cent stake.
Also read: Auto Retail Sales Up 11.21% In Nov Riding On Two-Wheeler Demand: FADA
Vodafone Idea reported a consolidated loss of Rs. ₹ 7,175.9 crore in the September quarter, mainly due to an increase in average revenue per user (ARPU) following the tariff hike in July. The company had reported a loss of ₹ 8,746.6 crore a year ago.
During the reported quarter, VIL completed a mega deal worth about US$3.6 billion (about Rs 30,000 crore) with Nokia, Ericsson and Samsung for the supply of network equipment over a period of three years, the delivery and deployment of which began in October.
In the second quarter of the current fiscal, VIL's consolidated revenue from services grew by 1.8 per cent to ₹ 10,918.1 crore from ₹ 10,714.6 crore.
Its consolidated income from operations in the quarter rose to ₹ 10,932.2 crore from ₹ 10,716.3 crore.
According to data shared in the Lok Sabha recently by Minister of State for Communications Pemmasani Chandra Shekhar, as of March 31, 2024, Vodafone Idea's debt will be worth Rs. 2.07 lakh crore, Bharti Airtel's Rs. 1.25 lakh crore and Jio Infocomm's Rs. 52,740 crore.
(With PTI's Input)