Voda Idea approves raising up to Rs 25\,000 crore via equity\, debt

Mumbai: Telecom major Vodafone Idea said on Friday its board has approved raising up to Rs 15,000 crore through equity shares or convertible securities.

Such fund raising may be done through a public issue, preferential allotment, private placement, qualified institutions placement or through any other permissible mode in one or more tranches.

The company also approved raising up to Rs 15,000 crore through debentures, and capped the total raising of funds through equity and debt at Rs 25,000 crore.

It said the proposals for fund raising will be taken up at the annual general meeting scheduled on September 30.
The stock witnessed choppy trade on Friday, as it closed 4.4 per cent lower at Rs 12.01. Earlier in the day, it had logged a fresh 52-week high of Rs 13.45.

The developments come after the Supreme Court gave telcos, including Vodafone Idea, 10 years to pay their adjusted gross revenue (AGR) dues. Vodafone Idea’s balance AGR dues amount to nearly Rs 50,400 crore.

The cash-strapped telco is now moving to raise funds, having received clarity on how much cash it needs — not just for annual AGR dues (estimated at over Rs 7,000 crore, beginning March 2022) but also for expanding its 4G network.