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Vodafone Idea in an exchange filing last week had said that its board will meet on December 9 to consider the issue of equity shares or convertible securities to the tune of ₹2,000 crore.
The issue of shares or securities will be done on a preferential basis to the Vodafone Group, which is one of the promoter group entities.
Just last week, the Vodafone Group sold its remaining 3% stake in Indus Towers via block deals for ₹2,802 crore. Part of those proceeds will be used to repay its own existing debt to lenders.
The remaining part of the proceeds are likely to be infused into Vodafone Idea through this issue of shares or securities, who will then use that to clear the outstanding dues owed to Indus Towers.
As per brokerage reports, Vodafone Idea’s current outstanding to Indus Towers stands at ₹3,500 crore.
The price at which the shares or securities are issued will also be in focus as shares of Vodafone Idea are down 27% from their FPO issue price of ₹11 per share.
Earlier this year, Vodafone Idea had raised over ₹18,000 crore through India’s largest Follow-on Public Offer (FPO) on record. The stock also went on to make a high of ₹19 this year, but has since corrected nearly 60% from those levels.
Shares of Vodafone Idea ended 0.5% higher on Monday at ₹8.12. The stock is down 52% so far in 2024.
Also Read: How much dividend can Indus Towers pay shareholders post clearing of its dues?
