EGM to raise Rs 20,000 through Vodafone Idea securities

EGM to raise Rs 20,000 through Vodafone Idea securities

Troubled telecom company Vodafone Idea on Tuesday said it held an extraordinary general meeting to seek shareholders’ approval to raise up to Rs 20,000 crore by issuing securities. The company said in the information given to the stock exchange that the results of the voting will be informed separately.

Vodafone Idea (VIL) said in the notice, “An extraordinary general meeting of the company was held today i.e. Tuesday, April 2, 2024 at 3.00 pm through video conferencing/other audio visual medium…”

The agenda listed at the extraordinary general meeting (EGM) was related to ‘issuance of securities up to an aggregate amount of Rs 20,000 crore’. It is noteworthy that the company had said in February this year that its board of directors has approved raising equity capital of up to Rs 20,000 crore from promoters and other investors by June.

The company needs capital for 5G implementation and strengthening 4G services. The debt-laden company is planning to raise Rs 45,000 crore through a mix of equity and bonds to take on rivals Jio and Bharti Airtel.

The government also has more than 33 percent stake in the company. Vodafone Idea has a debt of Rs 2.1 lakh crore. The company is not recovering from quarterly losses and its customers are decreasing every month.

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