Vodafone Ideas Board gives nod to raise Rs 25,000 crore
The Board of Directors of Vodafone Idea on Friday approved a proposal to raise up to Rs 25,000 crore through Global Depository Receipts (GDR), American Depository Receipts (ADR), non-convertible debentures, and other routes.
The Board of Directors of Vodafone Idea on Friday approved a proposal to raise up to Rs 25,000 crore through Global Depository Receipts (GDR), American Depository Receipts (ADR), non-convertible debentures, and other routes.
The development comes after the Supreme Court`s September 1 verdict on the Adjusted Gross Revenue (AGR) issue, wherein the top court gave a 10-year timeline to the telecom companies to repay their dues, with an upfront payment of 10 per cent by March 31, 2021.
In a regulatory filing, the company said its board has approved raising of funds through issue of equity shares or securities convertible into equity shares, GDR, ADR, foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants entitling the warrant holders to apply for equity shares, or a combination thereof, up to an aggregate amount of Rs 15,000 crore by way of a public issue, preferential allotment, private placement, qualified institutions placement, or through other permissible mode in one or more tranches.
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Further, it also plans to raise funds through "issuance of unsecured and/or secured, non-convertible debentures up to an aggregate amount of Rs 15,000 crore, by way of public offering or private placement basis or otherwise, in one or more tranches".
However, the total funds raised under both the modes shall not exceed Rs 25,000 crore, the company said.
The telecom company will now seek the shareholders` nod for the move at its Annual General Meeting on September 30, 2020.
Market analysts have time and again said that Vodafone Idea would require raising funds and may also need government support for its survival as it is already under financial stress. The AGR dues have further burdened the company.
According to an assessment by the Department of Telecommunications, Vodafone Idea owed a total of Rs 58,254 crore. As per the government, the operator now owes balance AGR dues of around Rs 50,399 crore.
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