Financial Insights

Vodafone UK raises its stake in Vodafone Idea to 47.61%

British Teleco Vodafone has raised it’s stake in the loss making Vodafone Idea from 44.39% to 47.61%. This was done through a subsidiary of the Vodafone Group called Prime Metals.

This news comes after Vodafone Idea announced that it’s Board agreed to allot 338.3 crore shares at Rs 13.30 per share to three of it’s promoters- Euro Pacific Securities, Prime Metals & Oriana Investments- in a deal worth Rs 4,500 crores.

This is part of the debt-ridden teleco’s plan to raise funds around Rs 14,500 crores. To add on to it’s relief, the government may release bank guarantees worth Rs 15,000 crores. This could help address the company’s cash flow issues and allow the company to compete firmly at the upcoming spectrum auction.

Telcos have requested the government for easier spectrum payment terms. If that is considered, that would also be a helping factor for Vodafone Idea and the entire telecom industry.

Highlight by Aman Agarwal.

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