Vodafone Idea stock slides after its Board issues 139.50 cr shares

Vodafone Idea Share Price: Vodafone Idea slipped nearly 2.70 per cent in morning deals on BSE on Monday (April 8, 2024) after the company's board approved the issue of 139.5 crore shares at Rs 14.87 per share to its promoter, Oriana Investments Pte. Ltd (Aditya Birla Group).

Vodafone Idea is set to raise Rs 2,075 crore through the preferential issue.

Vodafone Idea share price

In the first session after the development, the stock of the telecom company slid by 2.70 per cent to the day's low of Rs 12.96 after closing at Rs 13.32 in the previous session.

After opening at Rs 13.99 on Monday, the Vodafone Idea stock failed to continue momentum and slipped. 

The stock was trading lower by 1.65 per cent, or Rs 0.22, at Rs 13.10 at 10:26 am on Monday.

Vodafone Idea share issuance

Informing about decisions taken in its Board of Directors meeting on April 6, Vodafone Idea said- 

1. Issuance of up to 1,395,427,034 Equity Shares of face value of Rs. 10/- each at an issue price of Rs. 14.87 per equity share (including a premium of Rs. 4.87 per equity share), aggregating to Rs. 2,075 crores to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (‘ICDR Regulations’). The relevant date, in terms of provision of ICDR Regulations for determining the floor price of the Preferential Issue, is April 8, 2024.

2. The Board also approved an increase in Authorised share capital of the Company from existing Rs. 75,000 crores (divided into Rs. 70,000 crore equity share capital and Rs. 5,000 crore preference share capital) to Rs. 1,00,000 crores (divided into Rs. 95,000 crore equity share capital and Rs. 5,000 crore preference share capital). 

The board also approved the convening of an extraordinary general meeting of the company on Wednesday, May 8, 2024, inter-alia, to approve the above matters, the company said in the statement.