Business
Vodafone Idea set for Rs 20,000 crore fundraise; shareholders nod awaited
By - 27 Feb 2024 09:41 PM
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Vodafone Idea Ltd is set to raise Rs 20,000 crore through a mix of equity and equity-linked instruments after having received the go ahead from the company's board.In an official statement filed with the exchange, the company stated, "The Board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise." To get the green light for the fundraising, the telecom company plans to hold an extraordinary general meeting with its shareholders on April 2.If shareholders give their nod, the company aims to wrap up the equity fundraising in the upcoming quarter. Alongside the fundraising, Vodafone Idea is actively working with its lenders to secure debt funding, which will complement the equity fundraising.Notably, the promoters have pledged to join in the equity raise, as previously committed, Vodafone Idea confirmed. "The equity and debt fund raising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion. These investments will enable the company to improve its competitive positioning and offer an even better customer experience," the company stated, explaining the purpose behind the fundraising. As of the end of December, Vodafone Idea's gross debt amounted to Rs 2.15 lakh crore. This includes deferred spectrum payment obligations, AGR liability due to the government, optionally convertible debentures, and dues towards banks and financial institutions. Despite its financial challenges, Vodafone Idea has been steadily growing its 4G subscriber base and average revenue per user (ARPU) for the past 10 quarters.Currently, Vodafone Idea's bank debt is relatively modest, standing at less than Rs 4,500 crore. |
