Vi clears allotment of 3rd tranche of equity shares worth Rs 614.5 crore to Nokia, Ericsson

The Vodafone Idea (Vi) board on Friday approved allotment of the third tranche of equity shares totalling Rs 614.5 crore on a preferential basis to its two European network gear vendors Nokia and Ericsson.

This follows Vi announcing last month its plans to raise up to Rs 2,458 crore from the two vendors via a preferential issue for partly clearing its dues in the run-up to expansion of its 4G networks and rollout of 5G services in priority markets.

“…the Capital Raising Committee of the board , has, at its meeting held today (July 19) approved the third tranche of allotment of 41,52,02,701 equity shares of face value of Rs 10 each at an issue price of Rs 14.80 per share (including a premium of Rs 4.80 per share), to Nokia Solutions and Networks India (25,67,56,756 equity shares) and Ericsson India (15,84,45,945 equity shares), vendors (non-promoter) of the company, aggregating to Rs 614.5 crore, on a preferential basis,” Vi said in an exchange filing Friday.


After the allotment, the telco’s paid-up capital will increase to Rs 69,284.5 crore. Nokia and Ericsson will participate for up to Rs 1,520 crore and Rs 938 crore respectively in the preferential issue. Nokia and Ericsson will eventually get a 1.5% and 0.9% stake respectively in Vi.