Vodafone Idea calls EGM on June 11 for ₹4,730 crore preferential warrant issue

Vodafone Idea Limited has announced an Extraordinary General Meeting (EGM) scheduled for June 11, 2026, to seek shareholder approval for a proposed preferential issue of warrants worth up to ₹4,730 crore to promoter group entity Suryaja Investments Pte. Ltd.

The telecom operator said the proposal involves the issuance of up to 430 crore warrants at ₹11 per warrant, with each warrant convertible into one fully paid-up equity share of face value ₹10 at a premium of ₹1 per share. The proposed issue price is marginally above the regulatory floor price calculated under SEBI ICDR norms.

According to the explanatory statement attached to the EGM notice, Vodafone Idea intends to utilise the proceeds towards network expansion and repayment of loans taken for capital expenditure related to network infrastructure. The company has earmarked ₹1,730 crore for capex towards network expansion by March 2028, while ₹3,000 crore will be used for repayment of loans by December 2027.

The company stated that the warrants may be converted into equity shares in one or more tranches within 18 months from the date of allotment. As per the terms, 25% of the warrant issue price will be payable upfront at the time of allotment, while the remaining 75% will be payable upon conversion into equity shares.

The proposed allotment will be made to Suryaja Investments Pte. Ltd., an Aditya Birla Group entity and part of Vodafone Idea’s promoter group. The filing identified Kumar Mangalam Birla as the ultimate beneficial owner of the proposed allottee.

Post conversion of the warrants, Aditya Birla Group’s stake in Vodafone Idea is expected to rise to 13.02% from 9.57%, while the total promoter shareholding would increase to 28.48% from 25.64%. The Government of India would continue to remain the single largest shareholder with a 47.13% stake on a fully diluted basis.

Vodafone Idea clarified that the preferential issue will not result in any change in control or composition of the company’s board.

The company has appointed Acuité Ratings and Research Limited as the monitoring agency for the utilisation of proceeds from the preferential issue, in compliance with SEBI regulations.

The remote e-voting process for shareholders will commence on June 8 and conclude on June 10 ahead of the virtual EGM scheduled on June 11 at 4:30 PM.

Disclaimer: This article is based on company exchange filings and is for informational purposes only. It does not constitute investment advice.