Vodafone Idea plans to raise Rs 45,000 crore through equity, debt – Dainik Savera Times
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New Delhi: The board of directors of telecom service provider Vodafone Idea on Tuesday approved raising funds of up to Rs 20,000 crore through equity and equity-linked instruments, which will also include the company’s promoters. Along with this, Vodafone Idea said that a plan has been made to raise funds of about Rs 45,000 crore through a mix of equity and debt. The company, which is facing a serious financial crisis, is currently struggling to save its existence. It has a huge debt of about Rs 2.1 lakh crore and is also facing quarterly losses amid the continuous decline in the number of customers.
The telecom company said in a statement that its board of directors has approved the proposal to raise funds up to Rs 20,000 crore through a mix of equity and/or equity-linked instruments. For this, the management has also been authorized to appoint bankers and consultants. The company will take approval on this proposal in its shareholders’ meeting on April 2.
It expects to complete the process of raising equity funds in the coming quarter. Promoters will also participate in the equity raising process. The company said that after raising equity funds, it will actively work with its lenders for debt financing. The company plans to raise around Rs 45,000 crore through a combination of equity and debt.
Company’s plan after raising equity and debt funds
According to the statement, after raising equity and debt funds, the company will be able to invest for 4G coverage, 5G network rollout and capacity expansion. This will enable the company to improve its competitive position and provide better customer experience. Vodafone Idea said the performance has shown consistent improvement even with limited investment. With the proposed fund raise and positive operational growth the company is confident of competing effectively in the market.
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