Vodafone Idea board approves Rs 25,000 crore fund-raising plan

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September 4, 2020 8:05 PM

The crucial decision comes just days after the Supreme Court directed all telecom operators to pay 10 per cent of total adjusted gross revenue (AGR)-related dues this year, and rest of the payments in 10 instalments, starting from next fiscal year.

The fund-raising plans are subject to shareholders’ nod and other stipulated approvals.

Telecom operator Vodafone Idea on Friday said its board of directors has approved plans to raise up to Rs 25,000 crore. The funds will be raised through a combination of equity and debt instruments and the total fund-raising will not exceed Rs 25,000 crore, the company said in a regulatory filing.

It also mentioned, “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”.

The fund-raising plans are subject to shareholders’ nod and other stipulated approvals.

The crucial decision comes just days after the Supreme Court directed all telecom operators to pay 10 per cent of total adjusted gross revenue (AGR)-related dues this year, and rest of the payments in 10 instalments, starting from next fiscal year.

The fund-raising will throw a potential lifeline to the cash-strapped telco, which suffered massive losses, has been losing subscribers and ARPUs, and facing outstanding AGR dues of about Rs 50,000 crore.

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