Voda Idea aims to raise Rs 45,000 crore via equity, debt
SUBSCRIBE
JOBS
Go Back
1 month ago 01:54:43pm Television

Voda Idea aims to raise Rs 45,000 crore via equity, debt

New Delhi, 28-February-2024, By IBW Team

Voda Idea

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, PTI reported.

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 churn.

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

The Board has also authorized the management to appoint bankers and counsels to execute the fundraise.

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 fundraising. Through a combination of equity and debt, the company plans to raise around Rs 45,000 crores,” it said.

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

“The equity and debt fundraising 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 fundraising 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 percent 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 percent in VIL. Aditya Birla Group, which is one of the promoters of the troubled telco, holds around 18 percent stake in VIL, and British telecom giant Vodafone Group owns a 32 percent stake.


Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Our Events

  • img
    SatCab Symposium

    SatCab symposium organized by Aavishkar Media Group is an annual event. It's a well-informed event where we have a panel discussion on the current affairs and future forecasting on our industry.

  • img
    BCS
    Ratna Awards

    BCS Ratna Award organized by Aavishkar Media Group is an annual event. In this award function, a community of our industry is honored by receiving the award for the contribution of their work.

  • img
    Chetna Yatra

    Chetna Yatra organized by Aavishkar Media Group is an annual event. Held by Dr. AK Rastogi, Chairman of Aavishkar Media Group. Pilgrimage India in his car for connecting the people of our industry.

  • img
    Imaan India Sammaan

    Imaan India Samman is an event mobilized by Aavishkar Media Group, which was launched in 2012. Giving the award to the NGOs for giving their contribution to society.

Youtube Videos