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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.
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.
28 Comments on this Story
yogesh Mehta there is no great news here. its just a plan to raise capital. the mrkt had baked in rumours of Verizon buying a stake in Voda. Good news would be if some reliable investor invests in Vodafone. Whatever happened to the sale of fiber business, did not see any news on that | |
yogesh Mehta the question is who will invest. with Voda & Birla not interested in bringing in more capital who will want to enter into a loss making entity saddled with debt. LC on monday | |
Iyerravishankar Iyer IT IS CLEARLY MENTIONED non-convertible debentures TO BE INVESTED BY TWO LARGE INVESTORS. Don't touch equity share holding, please. Yes Bank experience is an glaring Ex Ample. AS FAR AS VODOFONE IDEA, IT IS PRIVATE PLACEMENT AND NOT EQUITY CAPITAL. PEOPLE SHOULD NEVER EVER BE CONFUSED WITH EQUITY CAPITAL. IF I AM WRONG, EXPERTS, PLEASE CORRECT ME URGENTLY. |