Vodafone and idea merged their business last year in order to create India’s largest telecom company. There biggest chunk of shares that is 11.13% is with Euro Pacific Securities. The merger is done with an intention to take on competition posed by Mukesh Ambani’s Reliance Jio.
Vodafone Plc pledges 100% of its stake in Vodafone idea with seven foreign banks after the country’s largest telecom operator issued new shared to promoters to raise funds to pare debt. It now holds 44.39% of the equity share capital in Vodafone Idea which is worth more than Rs. 18,000 crore. Such equity shares are subject to an indirect encumbrance.
Vodafone Group through 12 entities holds a stake in Vodafone Idea, which are based outside India and Mauritius, namely – Omega Telecom Holdings, Jaykay Finholding (India), Telecom Investments India and Usha Martin Telematics. And Al-Amin Investments, Asian Telecommunication Investments (Mauritius), Trans Crystal, Vodafone Telecommunications (India), CCI (Mauritius), Inc, Euro Pacific Securities, Prime Metals and Mobilvest respectively.
The pledge was formulated as a result of the fund infusion of Rs17,920 crore by Vodafone group and its partner Aditya Birla Group into Vodafone Idea via a right issue. After which the promoter’s stake had risen to 71.57% from 71.33%. The right issue, in all, raised Rs. 25,000 crore with a view to cut debt, which stands at Rs1.14 lakh crore.