For Quick Alerts
For Daily Alerts

Vodafone Idea Modifies Objects Of Its Rights Issue After DoT Relief


Late on Sunday night, Vodafone Idea in a stock exchange filing said that its board has approved to modify the objective of the utilisation of proceeds from its Rs 249,997.89 million rights issue.

Vodafone Idea Modifies Objects Of Its Rights Issue After DoT Relief

The telecom operator said that under the "Letter of Offer" of the rights issue, it was proposed to utilize an amount of Rs 186,747.89 million towards payment of certain deferred payment liabilities to the Department of Telecommunications (DoT) and repayment of certain borrowings.

"The aforesaid amount included an amount of Rs. 28,261 million to be utilised as part payment towards a deferred payment liability of Rs. 62,771 million to DoT which was payable by 9 April 2020," it said.

"The DoT has now granted a two year moratorium on deferred payment liabilities towards spectrum payments to telecom companies and hence the amount of Rs.28,261 million earlier earmarked for payment of deferred payment liabilities identified in the Letter of Offer need not be utilized for that purpose," it added.

The company will utilise these proceeds on the redemption of Non-Convertible Debentures (including interest) and repayment of loans.

Shares of Vodafone Idea were fluctuating between Rs 6.05 and Rs 6.10 on Monday.

The government has provided a 2-year breather for Bharti Airtel and Vodafone Idea on the deferred payments for spectrum purchases which they were initially required to pay within months after the 24 October Supreme Court hearing.

Story first published: Monday, January 13, 2020, 10:34 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more