Vodafone Idea (Vi), the ailing telecom operator has said that its board is going to meet on June 22, 2022 (Wednesday) for considering a proposal for raising up to Rs 500 crore. The telco said in a BSE filing that its board will discuss a Rs 500 crore fundraising via issuance of equity shares or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group UK, the largest promoter of the company.
Vodafone Idea Shuts Down Trading for Designated People
The telco said that all the designated people in the company will not be able to trade securities of Vodafone Idea till 48 hours from the conclusion of the board meeting. This means the designed people in Vi will be able to trade securities of the telco only from June 25, 2022. The move is in line with the Securities and Exchange Board of India’s (SEBI’s) Insider Trading Regulations and the company’s Code of Conduct to regulate, monitor, and report trading by designated persons in listed or proposed to be listed securities of the company.
The amount that Vi’s board is discussing raising isn’t big enough to help the telco in any major material manner. But something is better than nothing. Vi hasn’t been able to raise funds from external investors and thus is looking for help from the promoters. The Vodafone Group UK already has the biggest stake in the company. But that will change once the government takes its share of equity against the interest dues that Vi owes.
Vodafone Idea’s stock (listed as IDEA) closed in the red at Rs 8.20 on Friday. The value of the stock has come down significantly over the months after going to Rs 14 to Rs 15 levels. A fundraising and aggressive boost in network performance can only help the telco in retaining users and adding new ones.
