Hindalco posts 25 pc increase in Q1, net profit at Rs 3074 crore
Aditya Birla Group company Hindalco on Tuesday reported a 25 per cent increase in consolidated net profit to Rs 3,074 crore for the April-June quarter of the current financial year.
Coming as a relief for the debt-ridden Vodafone Idea, the company’s board has approved raising of Rs 2,075 crore from promoter Aditya Birla group and increasing its authorised share capital to Rs 1 lakh crore.
In this regard, the company will seek shareholders’ approval at an extraordinary general meeting on May 8 on the proposals, it said in a regulatory filing.
“The Vodafone Idea board has approved issuance of up to 1,395,427,034 equity shares of face value of Rs 10 each at an issue price of Rs 14.87 per equity share (including a premium of Rs 4.87 per equity share), aggregating to Rs 2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming part of the promoter group), on a preferential basis,” the filing said.
Advertisement
The board has also approved an increase in the authorised share capital of the company from existing Rs 75,000 crore, divided into Rs 70,000 crore equity share capital and Rs 5,000 crore preference share capital, to Rs 1 lakh crore.
The increased authorised share capital of the company will be divided into Rs 95,000 crore equity share capital and Rs 5,000 crore preference share capital.
Notably, the approvals are part of the company’s plans to raise Rs 20,000 crore of capital to fund its operations and lower its debt burden.
The funds will allow the telecom major to expand its 4G network and rollout 5G services. Analysts suggest that these moves could help the company regain some of its competitive edge by offering a better experience to its users.
Vodafone Idea, the firm in which the Indian government holds just over 33 per cent equity stake, intends to secure Rs 45,000 crore via a blend of equity and debt to match the offerings of competitors Jio and Bharti Airtel and potentially curb subscriber attrition.
The capital infusion will equip Vodafone Idea with resources to enhance its competitive stance in the telecom sector, where it trails significantly behind larger rivals Reliance Jio and Bharti Airtel.
Advertisement
