Voda-Idea will give shares worth this much crores to Nokia India-Ericsson

Debt-ridden telecom company Vodafone Idea will allot shares worth Rs 2,458 crore to Nokia India and Ericsson India to pay its partial dues. The board of Vodafone Idea Limited (VIL) has approved the allotment of shares on a preferential basis at a price about 35 per cent higher than the company’s follow-on offer price. These shares will be issued with a lock-in of six months. The company gave this information in a regulatory filing on Thursday.

The company said in its statement, “The Board of Directors of Vodafone Idea Limited today approved the allotment of shares to its two major vendors, Nokia Solutions and Networks India Private Limited and Ericsson India Private Limited, of about 166 crore equity shares of face value of Rs 10 at an issue price of Rs 14.80 per share for a total profit of up to Rs 2,458 crore.

The telecom company said in a release that Nokia and Ericsson will participate up to Rs 1,520 crore and Rs 938 crore respectively. The decision will be approved by VIL shareholders in the EGM to be held on July 10, 2024.