Vodafone Idea Gains 10% Ahead Of Strategic Announcement

On Monday, shares of Vodafone Idea opened 10 percent higher at Rs 13.25 on NSE.

On 4 September, the telecom operator's board approved raising funds to the tune of Rs 25,000 crore. It will be raising up to Rs 15,000 crore through NCDs and up to Rs 15,000 via equity shares, the company said in a stock exchange filing.

It also said that it would be making a strategic announcement on Monday at 11:45 am through a virtual platform. Those who wish to attend the meeting can do with pre-registration and watch the telecast on www.vilwebcast.com.

Vodafone Idea has been in the news since the end of 2019 for its financial struggles amid hefty AGR dues. In the latest development on the issue, the Supreme Court of India on 1 September ruled that a staggered payment of additional gross revenue (AGR) dues could be allowed for a period of 10 years even as the company had requested 15 years to pay the amount and grow its business at a time when its competition is getting ready for the launch of 5G technology.

For the June quarter, the company had recognised a charge of Rs 19,440 crore as an exceptional item towards total estimated AGR liabilities, in addition to the estimated recognised liability of Rs 46,000 crore in the previous quarter.

Vodafone Idea has seen its user base plunge to nearly 280 million as on 30 June 2020 from 408 million at the time of merger after the entry of Reliance Jio in the Indian telecom market, triggered by heavy market-share declines in urban circles.

Media reports suggested that Verizon and Amazon may invest over $4 billion in Vodafone Idea. However, the telecom operator in an exchanges filing, said while the company constantly evaluates various opportunities for enhancing the stakeholders' value, there is no such proposal being considered at present.