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Vodafone Pledges Its Entire Stake In Vodafone-Idea With 7 Foreign Banks

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Vodafone Plc, the group that holds 44.39 percent stake in Vodafone Idea, has pledged its entire stake in the telecom company with seven foreign banks. The 44.39 percent stake is roughly valued at Rs 18,000 crore, considering Thursday's trading price.

Vodafone Idea had recently issued new shares to its promoters to pare its debt.

Vodafone Pledges Its Entire Stake In Vodafone-Idea With 7 Foreign Banks
 

In a stock exchange filing, Vodafone Idea said that its promoter had pledged their 44.39 percent stake "in relation to financing arrangements for Vodafone Group companies" in favour of HSBC Corporate Trustee Company (UK) Ltd, which is acting as a trustee for BNP Paribas, HSBC Bank Plc, ING Bank NV Singapore branch, StanChart Bank, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc.

"Each of the entities named above has been incorporated outside India," it further added.

Vodafone Group holds a stake in Vodafone Idea through 12 entities based out of India and Mauritius.

The pledge was created within days after promoters of the telecom company, namely Vodafone Group and Aditya Birla Group, infused Rs 17,920 crore in the entity via a rights issue. Post the infusion, their collectively stake rose from 71.33 percent to 71.57 percent.

A total of Rs 25,000 crore was raised at the rights issue with a view to cut debt, which stands at a staggering Rs 1.14 lakh crore.

Vodafone and Idea had merged their businesses in 2018 to create India's largest telecom company after a stiff competition posed by Mukesh Ambani's Reliance Jio's entry into the market.

Read more about: vodafone idea vodafone
Story first published: Thursday, May 9, 2019, 16:00 [IST]
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