Vodafone Idea’s board approves fundraising up to Rs 25,000 crore

The proposal will be taken up for consideration at the company’s annual general meeting (AGM) on September 30
Vodafone, Idea

The board of Vodafone Idea on September 4 approved fundraising up to Rs 25,000 crore via a mix of instruments, the company said in an exchange filing.

The company is looking to raise funds, in one or more tranches, via issuance of Global Depository Receipts (GDRs), American Depository Receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures and warrants.

The board has decided to raise up to Rs 15,000 crore via equity and another tranche of Rs 15,000 crore by way of public offering or private placement of non-convertible debentures. It has, however, capped the total fundraising at Rs 25,000 crore.

The proposal will be taken up for consideration at the company’s annual general meeting (AGM) on September 30.

The cash-strapped telco is looking to raise capital to stay afloat as it faces a tough fight in the Indian market from key competitors: Bharti Airtel and Reliance Jio.

On September 1, the Supreme Court allowed telecom players a 10-year timeline for staggered repayment of their adjusted gross revenue (AGR) dues, directing them to make an upfront payment of 10 percent of the outstanding amount by March 31, 2021.

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.

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