Nokia and Ericsson are suppliers of equipment, allotment will clear part of VIL's outstanding due
MUMBAI: Debt-ridden telecom operator Vodafone Idea will allocate shares worth Rs2,458 crore to vendors Nokia India and Ericsson India to clear their partial dues, a regulatory filing said on Thursday.
The board of Vodafone Idea Ltd (VIL) has cleared allotment of shares on preferential basis at about 35 per cent higher price compared to the follow-on offer price of the company, and comes with a lock-in of 6 months.
"The Board of Directors of Vodafone Idea Limited today approved preferential allotment of about 166 crore equity shares of face value of Rs10 each, at an issue price of Rs14.80 per share, for an aggregate consideration of up to Rs2,458 crore, to two of its key vendors, Nokia Solutions and Networks India Private Limited and Ericsson India Private Limited," the filing said.
Nokia and Ericsson will participate for up to Rs1,520 crore and Rs938 crore respectively, subject to approval by VIL shareholders at the EGM to be held on July 10, 2024, the telco said in a release.
"Nokia and Ericsson both have a long-term partnership with VIL, as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues," the filing said.
