Debt-ridden telecom operator Vodafone Idea Ltd (VIL) on June 22 said its board of directors has approved raising up to Rs 436.21 crore by issuing equity shares through various modes.

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The board of directors of Vodafone Idea Ltd at its meeting held on June 22, 2022, has approved the raising of funds aggregating up to Rs 436.21 crore, the company said in a regulatory filing.

"Up to 42,76,56,421 equity shares of the face value of Rs 10 each; or (b) up to 42,76,56,421 warrants convertible into equity shares, to Euro Pacific Securities Ltd (a Vodafone Group entity and promoter of the company), on a preferential basis ," it said.

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In case equity shares are allotted, the issue price will be Rs 10.20 per equity share (including a premium of Re 0.20 per equity share). In case warrants are allotted, the issue price will be Rs 10.20 per warrant in respect of which 100 percent of the issue price will be paid upfront at the time of subscription of warrants.

The board also approved the convening of an extraordinary general meeting of the company on Friday, July 15, 2022, to seek the approval of shareholders for the aforesaid preferential issue, the company added.

Following the September reforms announced by the Centre, Vodafone Idea had opted for converting about Rs 16,000-crore interest dues payable to the government into equity.

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This will result in the government holding about 33 percent stake in the company. Sources at the Department of Telecommunications (DoT) said VIL's equity conversion proposal is in the final stages, and the required approvals on the same are expected as early as 7-10 days.

Shares of Vodafone Idea ended at Rs 8.53, up by Rs 0.060, or 0.71 percent on the BSE.

(Edited by : Shoma Bhattacharjee)