New Delhi: vodafone idea The board approved on Tuesday fund raising Up to Rs 20,000 crore through combination of equity and equity-linked instruments, the embattled telco said promoters Will also participate in the proposed equity increase. Overall, Vodafone Idea plans to raise around Rs 45,000 crore through a mix of equity and loanThe company said.
The company is fighting a desperate battle for survival – it has a debt of Rs 2.1 lakh crore and is reporting quarterly losses amid huge customer churn.
On Tuesday, the crisis-hit telecom company said its board of directors has approved raising funds of up to Rs 20,000 crore through a combination of equity and/or equity-linked instruments.
The board has also authorized the management to appoint bankers and consultants to raise funds.
The company will convene its shareholders’ meeting on April 2, 2024 and is expected to complete the equity fund raising process in the coming quarter after shareholders’ approval.
As promised earlier, the promoters will also participate in the proposed equity raise.
“Additionally, the company is actively engaged with its lenders for debt funding, which will be followed by raising equity funds. Through a combination of equity and debt, the company plans to raise approximately Rs 45,000 crore.”
Voda Idea said that its bank debt is currently less than Rs 4,500 crore.
“The raising of equity and debt funds will enable the company to invest for significant expansion of 4G coverage, 5G network rollout and capacity expansion,” the release said.
These investments will enable the company to improve its competitive position and provide a better customer experience.
“The company has shown consistent improvement in performance even with limited investments. With the proposed fund raise and positive operational growth, the company is confident of competing effectively in the market,” the release said.
The government’s stake in VIL is currently valued at 33.1 per cent after converting interest earned on statutory dues into equity in 2023.
Vodafone PLC and Aditya Birla Group have a total stake of 50.3 percent in VIL. Aditya Birla Group, one of the promoters of the troubled telecom company, holds about 18 percent stake in VIL, and British telecom giant Vodafone Group holds 32 percent.
The company is fighting a desperate battle for survival – it has a debt of Rs 2.1 lakh crore and is reporting quarterly losses amid huge customer churn.
On Tuesday, the crisis-hit telecom company said its board of directors has approved raising funds of up to Rs 20,000 crore through a combination of equity and/or equity-linked instruments.
The board has also authorized the management to appoint bankers and consultants to raise funds.
The company will convene its shareholders’ meeting on April 2, 2024 and is expected to complete the equity fund raising process in the coming quarter after shareholders’ approval.
As promised earlier, the promoters will also participate in the proposed equity raise.
“Additionally, the company is actively engaged with its lenders for debt funding, which will be followed by raising equity funds. Through a combination of equity and debt, the company plans to raise approximately Rs 45,000 crore.”
Voda Idea said that its bank debt is currently less than Rs 4,500 crore.
“The raising of equity and debt funds will enable the company to invest for significant expansion of 4G coverage, 5G network rollout and capacity expansion,” the release said.
These investments will enable the company to improve its competitive position and provide a better customer experience.
“The company has shown consistent improvement in performance even with limited investments. With the proposed fund raise and positive operational growth, the company is confident of competing effectively in the market,” the release said.
The government’s stake in VIL is currently valued at 33.1 per cent after converting interest earned on statutory dues into equity in 2023.
Vodafone PLC and Aditya Birla Group have a total stake of 50.3 percent in VIL. Aditya Birla Group, one of the promoters of the troubled telecom company, holds about 18 percent stake in VIL, and British telecom giant Vodafone Group holds 32 percent.
