en.Wedoany.com Reported - Vodafone Idea shareholders approved a 47.3 billion rupee investment from Aditya Birla Group (AB Group) through preferential warrants at a special general meeting on Thursday.
Following the investment, AB Group's stake in the telecom operator will increase from 9.6% to approximately 13%. Vi (short for Vodafone Idea) Chairman Kumar Mangalam Birla stated in a letter to shareholders that the company has weathered one of the most challenging periods in its history with resilience, and the focus now shifts to execution. This marks the first special general meeting chaired by Birla since he assumed the role. The fundraising will be conducted through the preferential allotment of up to 4.3 billion warrants to Aditya Birla Group entity Suryaja Investments, at an issue price of 11 rupees per warrant.
In May, Aditya Birla Group announced it would invest 47.3 billion rupees (approximately $500 million) in Vi to strengthen the financial position of the debt-laden telecom company and its ability to continue challenging larger competitors Reliance Jio and Bharti Airtel. Birla, who returned as Chairman of Vi's board in May, stated at the special general meeting that the deal reaffirms Aditya Birla Group's confidence in the company's long-term prospects and remains aligned with the interests of all shareholders.
The company said the new funds will be used for capital expenditure and loan repayment. Birla noted that the focus is now firmly on execution, with the company pursuing its priorities with discipline and purpose in operations, customer service, and network expansion. The benefits of continued investment in network infrastructure and promotion are increasingly evident, reflected in stronger operational performance and improved customer experience. This investment follows a series of measures aimed at stabilizing Vodafone Idea's finances. The government previously converted part of the company's spectrum usage fees into equity, becoming the largest shareholder with nearly 49% stake, while the promoter group continues to support the company through regular capital infusions.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
