Voda Idea to raise Rs436.21 cr from Vodafone via preferential issue of convertible warrants

“…the

board at its meeting today approved issuance of 42,76,56,421 warrants (each convertible into one equity share), to Euro Pacific Securities, a Vodafone Group entity and promoter of the company, at an issue price of Rs. 10.20 per warrant, aggregating Rs 436.21 crore on a preferential basis,” the company said in a late Friday evening BSE filing.

Vi added that 100% of the issue price would be paid upfront at the time of subscription of warrants. Each warrant would be convertible into 1 equity share and the rights attached to warrants can be exercised at any time, within a period of 18 months from the date of allotment.

Last month, Vi had announced it intends to raise upto Rs 500 crore from its UK promoter. Back in February and March, Vodafone UK had sold 7.1% stake in

— 2.4% via a block deal and 4.7% to Bharti Airtel — raising around Rs 3,831 crore. Of this, it invested Rs 3,375 crore in Vi by subscribing to newly issued shares. The proceeds were used by Vi to partly settle outstanding payments to Indus.

The fresh fund infusion from UK’s Vodafone is expected to come from the balance proceeds of its Indus Towers stake sale, say analysts. Vi has so far raised a total of Rs 4,500 crore through the issuance of fresh equity, with the remaining coming from the Indian promoter, the Aditya Birla Group.