Vodafone Idea board to meet on Friday to consider fund raising

By: |
September 2, 2020 5:20 PM

Vodafone Idea Ltd, in a late night filing to BSE on Monday, said the meeting of the board of directors of the company is scheduled on September 4, 2020.

Besides, VIL’s 11.15 per cent stake in Indus Towers has an estimated value of Rs 4,040 crore.

Telecom operator Vodafone Idea has said its board will meet on Friday to consider fund raising through various means.

The development comes following the Supreme Court verdict directing 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.

Vodafone Idea Ltd, in a late night filing to BSE on Monday, said the meeting of the board of directors of the company is scheduled on September 4, 2020.

The board at the meeting will “consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and/or combination thereof…by way of issue of equity shares or by way of issue of any instruments,” the filing said.

The board will also consider raising funds through securities including securities convertible into equity shares, global depository receipts, American depository receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed.

Besides, VIL’s 11.15 per cent stake in Indus Towers has an estimated value of Rs 4,040 crore.

The company will make prepayment of Rs 2,400 crore to the Indus tower-Bharti Infratel merged entity from cash that it will get from Bharti Airtel’s mobile tower arm.

This implies the company will get around Rs 1,600 crore inflow from stake sale in tower company.

“The prepayment amount will be adjusted to the extent of 50 per cent of all undisputed and due amounts payable by VIL to the merged tower entity post-closing and VIL will be required to pay only the balance 50 per cent of undisputed dues,” VIL said in a separate filing.

“The prepayment amount will accrue interest at 6 per cent per annum. This will continue until the entire prepayment amount with accrued interest is fully adjusted,” it added.

As per the government, Vodafone Idea has outstanding dues of Rs 58,250 crore till 2016-17, out of which the company has paid Rs 7,854 crore to the Department of Telecom.

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