Vodafone Idea approves fund raise of up to Rs 25,000 crore

Our Bureau Mumbai | Updated on September 04, 2020 Published on September 04, 2020

Indicating its intent to stay on in the highly competitive telecom market, the broad of cash strapped Vodafone Idea (VIL) has approved raising of up to ₹25,000 crore. The fresh funds would be used for payment of Adjusted Gross Revenue (AGR) dues and network expansion. The company did not specify what route it will take to raise the additional funds.

The telecom company approved raising of up to ₹15,000 crore through issuance of equity shares, Global Depository Receipts, American Depository Receipts, foreign currency convertible bonds, convertible debentures and warrants among others. This could be by way of a public issue, preferential allotment, private placement or qualified institutions placement among others in one or more tranches, it said in a regulatory filing.

Further, VIL’s board also approved raising of about ₹15,000 crore through issuance of unsecured or secured non-convertible debentures by way of public offering or private placement basis in one or more tranches.

“However, the total raising of funds shall not exceed ₹25,000 crore,” it said.

The approval came at its board meeting held today to consider and evaluate all fund raising proposals.

Among the telecom operators, VIL has the highest AGR dues of ₹58,254 crore, of which it had already paid ₹7,854 crore. On Tuesday, the Supreme Court permitted telecom companies, including VIL, to pay AGR dues staggered over a 10-year-period.

According to analysts, even with a 10-year staggered payment, despite a tariff hike, will nudge the industry towards a duopoly.

Vodafone Idea is also selling 11.15 per cent stake in Indus Towers for a about ₹4,000 crore in cash.

According to various reports, the India unit of British telecom major Vodafone Group is in talks with various global investors to raise about $1.5 billion.

Read also: Vodafone Idea getting its act together to stay in the game

Read also: AGR dues: Telcos now get 10 years to pay up



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Published on September 04, 2020
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