AB Group reaffirms bet on Voda Idea with ₹4,730 Cr infusion

Mumbai: Vodafone Idea shareholders approved a ₹4,730-crore investment from the Aditya Birla Group through a preferential allotment of warrants at an extraordinary general meeting (EGM) on Thursday.

With this, AB Group's stake in the telecom operator will increase to around 13% from 9.6%.

Addressing shareholders, Vi chairman Kumar Mangalam Birla said the company has navigated one of the most challenging periods in its history through resilience and now focus shifts to execution.

This was Birla's first EGM after assuming charge as chairman.

The fundraise will be through preferential allotment of up to 4.3 billion warrants to Suryaja Investments, an Aditya Birla Group entity, at an issue price of ₹11 per warrant.

Aditya Birla Group had in May said it will invest ₹4,730 crore (about $500 million) in Vi, reinforcing the debt-laden telecom company's financial health and its capability to continue challenging bigger rivals Reliance Jio and Bharti Airtel.

This followed Birla's return as chairman of Vi board earlier in May.

"This transaction re-affirms the Aditya Birla Group's belief in the long-term prospects of your company and continued alignment with the interests of all shareholders," Birla said at the EGM.

The fresh capital will be used for capital expenditure and repayment of loans, the company said.

"The focus now shifts firmly to execution," Birla said. "Across operations, customer service, and network expansion, the company is pursuing its priorities with discipline and purpose. The benefits of sustained investments in network infrastructure and rollout are now becoming increasingly visible, reflected in stronger operational performance and improved customer experience."

The investment follows a series of measures aimed at stabilising Vodafone Idea's finances. The government, which converted a portion of the company's spectrum dues into equity earlier, has emerged as the largest shareholder with a stake of nearly 49%, while the promoter groups have continued to support the company through periodic capital infusions.