As everyone expected, the Board of Vodafone Idea today approved the raising of funds of Rs 25,000 crore. The fresh round of fundraising will be subject to the approval of stakeholders. The Rs 25,000 crore will be used by the company to pay the pending dues and also to improve network connectivity across the country to take on rivals. The company informed this news via a fresh BSE filing. Vodafone Idea will raise Rs 15,000 crore via the issue of equity shares or securities convertible into equity shares and another Rs 15,000 crore via issuance of unsecured and/or secured, non-convertible debentures. However, Vodafone Idea stated the overall funds would not exceed Rs 25,000 crore.
Vodafone Idea to Raise Rs 25,000 Crore: What You Need to Know
In the BSE filing, Vodafone Idea stated the funds would be raised in two ways: “(a) issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts, foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares or a combination thereof up to an aggregate amount of Rs. 15,000 crore by way a public issue, preferential allotment, private placement, qualified institutions placement or through any other permissible mode in one or more tranches; and (b) issuance of unsecured and / or secured, non-convertible debentures up to an aggregate amount of Rs. 15,000 crore, by way of a public offering or private placement basis or otherwise, in one or more tranches.”
“However, the total raising of funds under (a) and (b) above shall not exceed Rs. 25,000 crore,” Vodafone Idea stated in the BSE listing. The proposals mentioned above will be discussed during the Annual General Meeting on September 30, 2020, concluded the telco.
The debt-laden Vodafone Idea is under several financial stress as it has to pay over Rs 50,000 crore to the government in the next ten years as AGR dues. The Rs 25,000 crore fundraise will help the telecom operator. Vodafone Idea will also be using the fresh funds to improve its network connectivity across the country over the next few quarters.
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