Vodafone Idea To Consider Raising Funds In Next Board Of Directors Meet – News18

Shareholders of Vodafone Idea, an organization that’s not doing so nicely just lately, have a ray of hope now. This is as a result of the board of administrators will meet on April 6 to resolve on the proposal to problem fairness shares or convertible securities on preferential foundation. During the corporate’s Extraordinary General Meeting (EGM), which was held on April 2, the corporate’s shareholders had accepted elevating as much as Rs 20,000 crore by issuing securities. A press release issued by Vodafone India to the inventory market mentioned, “We would like to inform you that the meeting of the Board of Directors of the company is going to be held on Saturday, April 6. In this, the proposal to issue equity shares and/or convertible securities on preferential basis will be considered.”

Vodafone Idea has been going by way of a monetary disaster for the previous couple of years, therefore the shares of the corporate have fallen considerably. In 2018, the corporate’s shares have been buying and selling round Rs 70, however now the value is round Rs 13.85 until the submitting of this report. After the information of fund elevating of Rs 20,000 crore unfold on Tuesday, there was a considerable rise in shares on the very subsequent day.

Vodafone Idea, in an effort to retain clients, cited the voting outcomes of the EGM within the discover, the place 99.01 p.c votes have been solid in favour of the decision associated to issuance of securities as much as an combination quantity of Rs 20,000 crore. The approval comes at a time when the debt-laden firm is planning to lift Rs 45,000 crore by way of fairness and debt to match the providers supplied by rivals Reliance Jio and Bharti Airtel and retain lengthy-time period clients.

It is noteworthy that the corporate had mentioned in February this yr that its board of administrators has accepted elevating fairness capital of as much as Rs 20,000 crore from promoters and different traders by June. The firm wants capital to implement 5G and strengthen 4G providers. Vodafone Idea has a debt of Rs 2.1 lakh crore and is consistently dropping out on its buyer base.