vodafone idea fundraising: Vodafone Idea plans to raise Rs 20,000 crore through equity. Participating Promoters
“The board of directors has also authorized the management to appoint various intermediaries, including bankers and lawyers, to execute the fund raising,” the company said in an exchange filing.
The telecom operator plans to hold a general shareholders’ meeting on April 2 and seek approval for the financing plan.
If approved by shareholders, the company expects to complete the equity financing in the next quarter.
The promoters will also participate in the proposed stake raise as promised earlier, Vodafone Idea said.
Vodafone Idea is actively working with lenders to raise debt financing through equity fund hikes. Through a combination of equity and debt, the cash-strapped operator plans to raise about Rs 45,000 crore. Vodafone Idea’s bank debt currently stands at less than Rs 4,500 crore.
“The equity and debt financing will enable the company to invest in significantly expanding 4G coverage, rolling out 5G networks and expanding capacity. These investments will enable the company to improve its competitive position and deliver a better customer experience,” the operator said.
As of December-end, Vodafone Idea’s total debt was Rs 2.15 lakh crore, which includes deferred spectrum payment obligations of Rs 1.38 lakh crore, AGR liability to the government of Rs 69,020 crore, optional convertible debentures amounting to Rs 1,660 crore, besides dues of Rs 1,660. It consists of crores. Banks and financial institutions.
Vodafone Idea has grown its 4G subscriber base and average revenue per user (ARPU) sequentially over the past 10 quarters. Improved operating metrics led the company to tap the market for funding.
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