Board approves Vodafone Idea’s plan to fund Rs 20K crore via debt and equity
The crisis-ridden telecom company Vodafone Idea claimed that its board has authorized a fund-raising of up to Rs 20,000 crore using a mix of equities and equity-linked instruments. It further said that promoters would take part in the planned equity raise.
According to the business, Vodafone Idea intends to fund around Rs 45,000 crore overall via a combination of loan and equity.
The firm, which has a debt of Rs 2.1 lakh crore and is posting quarterly losses due to significant customer churn, has been waging a desperate struggle to survive.
The financially distressed telecom company said on Tuesday that its Board of Directors had authorized raising up to Rs 20,000 crores using a mix of shares and equity-linked instruments.
In order to carry out the money raising, the board has also given the management permission to choose bankers and advisors.
On April 2, 2024, the firm will convene a shareholder meeting. If approved by the shareholders, it plans to conclude the equity capital raising in the next quarter.As previously promised, the promoters would take part in the planned stock offering as well.
Furthermore, the business is still in active communication with its lenders in order to finalize the debt financing, which will come after the equity fund raising. It said that the business aims to raise around Rs 45,000 crores via a mix of finance and equity. Voda Idea said that it now owes less than Rs 4,500 crore to banks.
The announcement also said, “The company will be able to make investments towards expansion of 4G coverage, 5G network rollout, and capacity expansion thanks to the equity and debt fund raising.”The firm will be able to provide an even better client experience and strengthen its competitive standing thanks to these initiatives.
