Vodafone Idea Allots Over 40 Crore Shares to Nokia and Ericsson
New Delhi [India], July 19: Vodafone Idea has approved the allotment of more than 40 crore shares on a preferential basis to Nokia Solutions and Networks India and Ericsson India. This move, totaling around Rs 615 crore, aims to enhance the company’s capital base.
The breakdown includes around 25 crore equity shares to Nokia Solutions and Networks India Pvt. and over 15 crore equity shares to Ericsson India Pvt. The issue price per equity share was set at Rs. 14.80, including a premium of Rs. 4.80 per share at a face value of Rs 10 per share.
“The Capital Raising Committee of the Board has approved the second 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 equity share (including a premium of Rs. 4.80 per equity share), to Nokia Solutions and Networks India Private Limited (25,67,56,756 Equity Shares) and Ericsson India Private Limited (15,84,45,945 Equity Shares), aggregating to Rs. 614.5 crores, on a preferential basis,” said the company.
Recently, Vodafone Idea added 0.8 million mobile broadband subscribers in May, but the company continued to see declines in both overall and active subscriber bases, losing 0.9 million and 1.7 million subscribers, respectively. The shares of Vodafone Idea closed at Rs 16.32 after a decline of more than 2 per cent on Thursday.
Doubts Revealed
Vodafone Idea -: Vodafone Idea is a big company in India that provides mobile phone and internet services to people.
Shares -: Shares are small parts of a company that people can buy. When you own shares, you own a small part of that company.
Nokia -: Nokia is a company that makes mobile phones and other technology products. It is well-known around the world.
Ericsson -: Ericsson is a company that helps build and manage mobile networks, which are used for phone calls and internet.
Preferential basis -: Preferential basis means giving special treatment to someone. Here, it means giving shares to Nokia and Ericsson in a special way.
Rs 615 crore -: Rs 615 crore is a very large amount of money in Indian currency, where 1 crore equals 10 million.
Capital base -: Capital base is the amount of money a company has to run its business and grow.
Premium -: Premium is extra money added to the basic price of something. Here, it means extra money added to the price of shares.
Mobile broadband subscribers -: Mobile broadband subscribers are people who use the internet on their mobile phones.
Subscriber bases -: Subscriber bases are the total number of people who use a company’s services, like phone or internet.