×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Vodafone Idea plans to raise about Rs 45,000 crore via equity, debt

The troubled telco had said that its Board of Directors have approved fund-raise of up to Rs 20,000 crores via a combination of equity and/or equity-linked instruments.
Last Updated 27 February 2024, 14:24 IST

New Delhi: Vodafone Idea board on Tuesday approved a fund-raise of up to Rs 20,000 crore through a combination of equity and equity-linked instruments, the crisis-ridden telco said, adding promoters will also participate in the proposed equity raise.

Overall, Vodafone Idea plans to raise around Rs 45,000 crore through a mix of equity and debt, the company said.

The company has been fighting a desperate battle for survival - it has a debt of Rs 2.1 lakh crore and is reporting quarterly losses, amid massive subscriber churns.

On Tuesday, the troubled telco said its Board of Directors have approved fund-raise of up to Rs 20,000 crores via a combination of equity and/or equity-linked instruments.

The Board has also authorised the management to appoint bankers and counsels to execute the fund raise.

The company will call for a meeting of its shareholders on April 2, 2024, and post-shareholders’ approval it expects to complete the equity fund raise in the coming quarter.

The promoters will also participate in the proposed equity raise, as committed earlier.

"In addition, the company remains actively engaged with its lenders for tying up the debt funding, which will follow the equity fund raise. Through a combination of equity and debt, the company plans to raise around Rs 45,000 crores," it said.

Voda Idea said that its bank debt currently stands at less than Rs 4,500 crore.

"The equity and debt fund raising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion," the release added.

These investments will enable the company to improve its competitive positioning and offer an even better customer experience.

"The company has consistently shown an improvement in performance even with limited investments. With the proposed fund raise and the positive operational developments, the company is confident of effectively competing in the market," the release added.

The government holding in VIL is currently pegged at 33.1 per cent after it converted the accrued interest towards statutory dues into equity in 2023.

Vodafone Plc and Aditya Birla Group hold a total of 50.3 per cent in VIL. Aditya Birla Group, which is one of the promoters of the troubled telco, holds around 18 per cent stake in VIL, and British telecom giant Vodafone Group owns 32 per cent stake.

ADVERTISEMENT
(Published 27 February 2024, 14:24 IST)

Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks

Follow us on

ADVERTISEMENT
ADVERTISEMENT