Vodafone Idea board approves Rs 14,500-cr fund-raising plan

 

Telecom major Vodafone Idea's board on Thursday approved proposal to raise funds up to Rs 14,500 crore. The board approved issuance of up to 3.38 billion equity shares at issue price of Rs 13.30 per share to promoters on preferential basis. "Issuance of upto 3.38 billion equity shares of face value of Rs 10 each at an issue price of Rs 13.30 per equity share (including a premium of Rs. 3.30 per equity share), which is at a 10% premium to the floor price of Rs 12.08 for an aggregate consideration of up to Rs 4,500 crore to Euro Pacific Securities Ltd. and Prime Metals Ltd. (Vodafone Group entities and promoters of the company), and Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group)," the telco said in a stock exchange filing. The board also approved issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts foreign currency convertible bonds, convertible debentures, warrants of up to Rs 10,000 crore in one or more tranches. The board also approved convening of an extraordinary general meeting of the company on March 26. Shares of Vodafone Idea (Vi) surged 6% to Rs 11.08 on the BSE on Thursday in an otherwise slippery market ahead of the board meeting. The stock of telecom services provider quoted higher for the fourth straight day, and has rallied 16% during the period. The stock had hit a 52-week high of Rs 16.79 on December 10, 2021.

Flipkart to spin-off PhonePe, payments firm to be valued at $5.5 billion

 

Web based business goliath Flipkart is doing an incomplete side project of PhonePe, India's biggest computerized installments stage. The move will enable PhonePe to get to committed, long haul money to finance its development desire.

In this financing round, PhonePe is bringing $700 million up in essential capital at a post-cash valuation of $5.5 billion from existing Flipkart speculators drove by Walmart, the world's biggest retailer. PhonePe contends with opponents, for example, Google Pay, Amazon Pay and Alibaba-sponsored Paytm.

"Flipkart and PhonePe are now among the more noticeable Indian computerized stages, with more than 250 million clients each," said Sameer Nigam, Founder and CEO at PhonePe. "This incomplete side project gives PhonePe admittance to devoted long haul funding to seek after our vision of giving monetary consideration to a billion Indians."

In only a long time since its establishing, PhonePe has crossed the 250 million enrolled client achievement, with more than 100 million month to month dynamic clients (MAU) producing almost one billion computerized installment exchanges in October 2020. It is focusing to cross 500 million enrolled clients by December 2022.

Likewise READ: Optimistic about restoration in Q3, says FinMin in month to month monetary audit

Perceiving the energy that has been accomplished, just as PhonePe's huge development potential, Flipkart's Board verified that this was the ideal chance to mostly turn off PhonePe so it can get to committed money to finance its drawn out desire throughout the following three to four years.

The incomplete side project likewise gives PhonePe an occasion to establish another Board of Directors zeroed in on supporting its turn of events, and to make a customized value motivating force or ESOP program for its workers.

Flipkart will remain PhonePe's greater part investor, and the two organizations will hold their nearby cooperation.

"As Flipkart Commerce keeps on developing firmly serving the requirements of Indian clients, we are energized at the future possibilities of the gathering," said Kalyan Krishnamurthy, CEO of Flipkart Group. "This move will enable PhonePe to augment its potential as it moves to the following period of its turn of events, and it will likewise augment esteem creation for Flipkart and our investors."