Vodafone Idea plans to lift round Rs 45,000 crore by a mixture of fairness and debt, the corporate stated.
The telco stated its Board of Directors have accredited fund-raise of as much as Rs 20,000 crores by way of a mix of fairness and/or equity-linked devices.
Vodafone Idea board on Tuesday accredited a fund-raise of as much as Rs 20,000 crore by a mix of fairness and equity-linked devices, the crisis-ridden telco stated, including promoters may even take part within the proposed fairness increase.
Overall, Vodafone Idea plans to lift round Rs 45,000 crore by a mixture of fairness and debt, the corporate stated.
The firm has been combating a determined battle for survival — it has a debt of Rs 2.1 lakh crore and is reporting quarterly losses, amid huge subscriber churn.
On Tuesday, the troubled telco stated its Board of Directors have accredited fund-raise of as much as Rs 20,000 crores by way of a mix of fairness and / or equity-linked devices.
The Board has additionally authorised the administration to nominate bankers and counsels to execute the fund increase.
The firm will name for a gathering of its shareholders on April 2, 2024, and post-shareholders’ approval it expects to finish the fairness fund increase within the coming quarter.
The promoters may even take part within the proposed fairness increase, as dedicated earlier.
“In addition, the company remains actively engaged with its lenders for tying up the debt funding, which will follow the equity fund raise. Through a combination of equity and debt, the company plans to raise around Rs 45,000 crores,” it stated.
Voda Idea stated its financial institution debt presently stands at lower than Rs 4,500 crore.
“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,” the discharge added.
These investments will allow the corporate to enhance its aggressive positioning and supply an excellent higher buyer expertise.
“The company has consistently shown an improvement in performance even with limited investments. With the proposed fund raise and the positive operational developments, the company is confident of effectively competing in the market,” the discharge added.
The authorities holding in VIL is presently pegged at 33.1 per cent after it transformed the accrued curiosity in direction of statutory dues into fairness in 2023.
Vodafone Plc and Aditya Birla Group maintain a complete of fifty.3 per cent in VIL. Aditya Birla Group, which is without doubt one of the promoters of the troubled telco, holds round 18 per cent stake in VIL, and British telecom big Vodafone Group owns 32 per cent stake.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
