India’s largest telecom operator issued new stock to promoters to raise funds to pare debt as Vodafone Plc. pledged its entire stake in Vodafone Idea Ltd. with seven banks
The company said in a filing that shareholders of Vodafone Promoter Mauritius and Vodafone Promoter Indian pledged about 44.39 percent stake. Vodafone Group owns the stake through 12 entities based in India and Mauritius. The stake is valued at close to Rs 18,304 crore.
Vodafone Plc. said the security arrangement facilitates the fund raising backed by India infrastructure and telecom asset. However, it did not comment on when it plans to release the pledged shares.
Indus Towers is in process of merging with Bharti Infratel Ltd. Post this merger, Vodafone Plc is likely to sell majority of its stake and the proceeds may be used to repay this debt.
The Indian largest carrier’s shares have fallen more than 12.5 percent in the last two days.
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