Vodafone Idea raises $222 million via preferential allotment of shares

By P R Sanjai  India’s Vodafone Idea Ltd. has raised Rs 1,910 crore ($222 million) via a preferential allotment of shares to entities belonging to Vodafone Group Plc as the unprofitable wireless operator seeks to turnaround its business amid battles with larger rivals. 

The company alloted 1.69 billion shares at Rs 11.28 a piece to Omega Telecom Holdings Pvt. and Usha Martin Telematics Ltd., Vodafone Idea said in a stock exchange filing Thursday. 

 

The smallest of three private sector wireless operators in the country has struggled to retain subscribers amid competition from Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd., which have rapidly rolled out 5G networks across the country. 

 

The preferential allotment comes at a time when Vodafone Idea is trying to catch up with its stronger rivals. Part of billionaire Kumar Mangalam Birla’s cement-to-clothing conglomerate, it hasn’t reported an annual profit since 2016.