Debt ridden Vodafone Idea which has been reprieved on SC's decision on AGR verdict as it allows telcos 10 year timeline to clear AGR dues has in order to clear its 10% dues by March next year in its board meeting has decided to raise Rs. 15000 crore via equity shares or convertible securities.
For the fund raising the company may consider a public issue, preferential allotment, private placement, qualified institutions placement or through any other permissible mode in one or more tranches. Moreover additional fund raising via debt is looked at for up to Rs. 15000 crore with a total cap from both the routes at Rs. 25000 crore.
Further the proposal of fund raising shall be taken up at the company's AGM scheduled for September 30, 2020.
The counter on developments on fund raising and denial of any investment proposal witnessed a choppy trade first with a decline of up to 10% from last day's up to 30% gain and then clocked its 15-month high, which was also its 52-week high price and then closed lower by over 4% at Rs. 12.01. The company's balance AGR dues stand at Rs. 50400 crore.
The funds are also to expand its 4G network other than for payment of AGR dues which from the start of the period beginning March is estimated at more than Rs. 7000 crore.