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Vodafone Idea will raise its authorised share capital to Rs 50,000 crore, after it received shareholders' approval on Wednesday, which will enable the company to infuse additional funds. The follows a Rs 25,000 crore right issue by the company in April.
"The members have approved increase in the authorised share capital of the company from existing over Rs 30,293 crore to Rs 50,000 crore…," Vodafone Idea said in a regulatory filing.
The company received shareholders’ approval at its 24 annual general meeting held in Gandhinagar, Gujarat.
Vodafone Idea’s Rs 25,000-crore rights issue, the largest in the country, opened on April 10 and closed on April 24, wherein the promoters (Vodafone Group and Aditya Birla Group) were to infuse up to Rs 18,250 crore. The rights issue was oversubscribed by a little over 100 per cent.
The company was intending to build a war chest to accelerate integration of its operations (Idea and Vodafone), prioritise investments in profitable areas and focus on increasing average revenue per user (a financial metric for telecom companies) and focus on enlarging the business.
The shareholders also approved Vodafone Idea's plan to monetise its 11.15 per cent stake in telecom company, Indus Tower, which is in the process of merging operations with Bharti Infratel.
In April, Bharti Airtel, Idea Cellular and Vodafone Group had agreed to merge Vodafone’s, Idea Group’s and Providence Equity Partners’ shareholdings in Indus Towers into Bharti Infratel. This was to create a combined company that will own 100 per cent of Indus Towers.
The combination of Bharti Infratel and Indus Towers by way of merger will create a pan-India tower company, with over 1.63 lakh towers, operating across all 22 telecom service areas in India. The combined company will be the largest tower company in the world outside China.
Indus Towers is currently jointly owned by Bharti Infratel (42 per cent), Vodafone (42 per cent), Idea Group (11.15 per cent) and Providence (4.85 per cent.
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