Vodafone Idea Shareholders Approve ₹4,730 Crore Aditya Birla Group Investment

Vodafone Idea Ltd (Vi) shareholders on Thursday approved a ₹4,730-crore investment from the Aditya Birla Group through a preferential allotment of warrants, paving the way for the promoter group’s stake in the telecom operator to increase to around 13% from 9.6%.

The approval came at an extraordinary general meeting (EGM), the first chaired by Kumar Mangalam Birla since he returned as chairman of the company's board in May. At 12:03 PM, Vodafone Idea shares were trading at ₹14.90 a piece on the National Stock Exchange (NSE), up 3.11%.

What Is Under The Proposal?

Under the proposal, Vi will issue up to 4.3 billion warrants to Suryaja Investments, an Aditya Birla Group entity, at ₹11 per warrant.

The transaction will bring in ₹4,730 crore and strengthen the company's funding position at a time when it continues to invest in network expansion and compete with larger rivals Reliance Jio and Bharti Airtel. The company said it will use the fresh capital for capital expenditure and repayment of loans.

Stake Increase For Promoter Group

The investment was first announced in May when the Aditya Birla Group committed about $500 million, or ₹4,730 crore, to Vodafone Idea. The move comes after a series of funding and ownership changes aimed at stabilising Vi's finances.

The government had earlier converted part of the company's spectrum dues into equity, becoming the largest shareholder with a stake of nearly 49%. The promoter groups have also supported the company through multiple rounds of capital infusion over the years as the telecom operator worked to improve its balance sheet.

Focus Turns To Network Rollout

Addressing shareholders, Birla said the company had come through one of the toughest phases in its history and was now concentrating on executing its business plans. He said the latest investment reflects the Aditya Birla Group's confidence in Vodafone Idea's long-term prospects and its commitment to supporting the company alongside other shareholders.

Birla also pointed to progress in network expansion, customer service and operational performance. According to him, the impact of continued spending on network infrastructure is becoming more visible through improvements in service quality and customer experience.

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The investment provides additional financial support to Vodafone Idea as it seeks to go ahead with network upgrades and seeks to strengthen its position in India's highly competitive telecom market.

Sources:

The Economic Times

Moneycontrol