MUMBAI: Cash strapped Vodafone Idea<\/a> has said it is looking at raising another up to Rs 500 crore from one of its promoters, UK’s Vodafone Plc.
In a filing to the Bombay Stock Exchange late Sunday night, the loss-making company, jointly promoted by the British telecom major Vodafone, and Aditya Birla Group said that its board<\/a> will meet on June 22 (Wednesday).
The purpose of the meeting is to “consider proposal for raising of funds aggregating upto Rs. 500 crores, by way of issuance of Equity Shares and \/ or Convertible Warrants on a preferential basis to one or more entities belonging to Vodafone Group<\/a> (one of the promoters of the Company),” the company said in the filing.
Earlier this year in February and March, Vodafone Group sold 7.1% of its stake in Indus Towers—2.4% via a block deal and 4.7% to Bharti Airtel—raising around Rs 3,831. Of this, the company pumped Rs 3,375 crore into VIL by subscribing to newly-issued VIL equity, which VIL immediately used to partially settle outstanding payments to Indus Towers.
The fresh fund infusion from Vodafone Group is expected to come from the balance of the proceeds of its Indus Towers stake, say analysts. Vi<\/a> had raised a total of Rs 4500 crore through the issuance of fresh equity, the remaining coming from the Indian promoter.
Vodafone idea shares were down 2.6% at Rs8 in late morning trade on the BSE Monday.
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