vodafone idea: Vodafone Idea approves Rs 615 crore of share allotment to Nokia, Ericsson via preferential issue

Vodafone Idea on Thursday approved the first tranche of allotment of over 41.52 crore equity shares worth Rs 615 crores on a preferential basis to Nokia Solutions and Networks India Private Limited and Ericsson India Private Limited, the company said in its filing to the exchanges. The shares were issued at a price of Rs 14.80 per share.

While Nokia Solutions was allotted over 25.67 crore equity shares, Ericsson India was issued over 15.84 crore equity shares, the filing said.

The company board had approved the preferential allotment of shares to Nokia, Ericsson in its board meeting on June 13.

The company informed about the development after market hours. Vodafone Idea shares ended today at Rs 16.32 on the NSE, down by Rs 0.48 or 2.86%.

Nokia Solutions and Ericsson India are vendors of Vodafone Idea and this preferential allotment will enable VIL to clear part of their outstanding dues.On June 13, Vodafone Idea’s board of directors had approved a fundraising plan worth Rs 2,458 crore by issuing over 166 crore fully paid-up equity shares in one or more tranches on a preferential basis.The company, in its filing to the exchanges, had then said that up to 1,02,70,27,024 equity shares of face value of Rs 10 apiece will be issued at a price of Rs 14.80 per equity share (including a premium of Rs 4.80 per equity share) to Nokia Solutions and Networks India Private Limited, a non-promoter of the company. The aggregate value of the shares will be up to Rs 1,520 crore.The filing further said that Vi will also issue up to 63,37,83,780 equity shares at an issue price of Rs 14.80 per unit that includes a premium of Rs 4.80 per equity share to Ericsson India, also non-promoter company. The issued shares will be worth up to Rs 938 crore.

This preferential allotment price is higher by 35% to the FPO price and comes with a lock-in of 6 months. Post this preferential issuance, the shareholding of Nokia and Ericsson in the company will be 1.5% and 0.9%, respectively. The promoter’s (ABG and Vodafone) shareholding will stand at 37.3% and shareholding of the Government of India will stand at 23.2%, while the balance 37.1% will be with the public.