Vodafone Idea’s board will meet on September 4 to chalk out fund raising plans for the telco so that it can service AGR dues of Rs 50,400 crore to the government over the next 10 years, besides invest in its networks to take on competition.
“Wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on September 4, 2020, inter-alia, to 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 as may be considered appropriate, by way of issue of equity shares or by way of issue of any instruments or 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,” said the telco in a regulatory exchange on late Tuesday .
Shares of VIL were up by 7.42% at Rs 9.55 in the morning trading hours .
ET reported on Wednesday that VIL needs to quickly raise at least $3-4 billion through a combination of capital infusion by promoters, rights issue and potential sale of fibre and data-centre assets to be able to compete effectively in the market, according to analysts.
The struggling telco is close to tying up funding, now that it has got clarity on its AGR payment timelines, said people with knowledge of the matter.
VIL faces annual outflows of around Rs 7,500 crore.