Vodafone Idea share price of board meeting on fund raising plan
The board of Vodafone Idea will meet on September 4 to discuss and possibly finalize fundraising proposals, shortly after the Supreme Court verdict in the adjusted gross revenue (AGR) case. Media reports said Vodafone Idea, which is struggling to keep its business alive in India, is planning to raise $1-1.5 billion.
On September 1, the apex court allowed telecom players a 10-year timeline to pay adjusted gross revenue (AGR) dues. The apex court also asked the companies to make an upfront payment of 10 percent of the outstanding amount by March 31, 2021. Media reports suggest that Vodafone Idea, which is struggling to keep its business alive in India, is planning to raise $1-1.5 billion.
The board will evaluate options to raise funds through public issues, preferential allotment, private placement, including a qualified institutional placement (QIP), the company said in a statement on September 2.
Vodafone Idea said it will consider raising capital through the issue of equity shares or other instruments or securities.
“In the first leg, the telecom is looking to raise funds through equality.It will later raise money through the debt route and tap bond markets,” a source told The Economic Times.
“The board meeting is likely to be more procedural… An enabling resolution would be taken,” the source added. Vodafone Idea has already paid a part of its AGR dues and has Rs 50,399 crore pending, Solicitor General Tushar Mehta said on July 20. Vodafone Idea on September 3 denied reports of investment proposals from US telecom major Verizon and e-commerce giant Amazon.