Vodafone Idea board approves proposal to raise up to Rs25,000 cr
07 Sep 2020
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The board of Vodafone Idea which met today, approved a proposal to raise funds of up to Rs25,000 crore through a mix of instruments, the company said in an exchange filing.
The cash-strapped company plans to raise funds in one or more tranches, including through issuance of Global Depository Receipts (GDRs), American Depository Receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures and warrants.
The board has decided to raise up to Rs15,000 crore via equity and another tranche of Rs15,000 crore by way of public offering or private placement of non-convertible debentures. The total fundraising, however, has been capped at Rs25,000 crore.
The proposal will be taken up for consideration at the company's annual general meeting (AGM) on 30 September.
Vodafone Idea needs to raise fresh capital to pay up overdue AGR arrears of over 50,000 crore to government and also stay afloat in the Indian market against tough competition from key competitors Bharti Airtel and Reliance Jio.
The Supreme Court in its verdict in the adjusted gross revenue (AGR) dues case allowed telecom players a 10-year timeline for staggered repayment beginning 1 April 2021. While most telcos will benefit from the verdict, Vodafone Idea with its Rs 50,399 crore outstanding AGR dues will have a tough time.
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