Telecom major Vodafone Idea has put on hold its plans to raise Rs 25,000 crore through sale of hybrid securities to foreign funds. The company is now looking to refinance its debt by borrowing capital instead.
The delay in the original plan is mainly due to the consistently low share price of Vodafone Idea and difference of opinion among investors of the company, sources told Mint.
"The company is in talks with lenders to raise close to Rs 10,000 crore by issuing papers such as non-convertible debentures," sources are quoted as saying by the report.
“Promoters Aditya Birla Group and UK’s Vodafone Group Plc believe that the business environment is set to improve considerably for the company, enhancing shareholder value," people in the know told the publication.
DH could not independently verify this report.
The company's plans to raise Rs 25,000 crore through sale of securities has been in play since August 2020.
Sources told Mint that the company is looking at a revamp in its operations in some circles to save fixed costs. "By implementing the latest strategies, Vodafone should be able to save at least Rs 700 crore in FY22."
(Published 15 March 2021, 09:52 IST)
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