Vodafone Idea to raise Rs2000 cr from Vodafone Group
The company had announced that after settling the debt, it intends to contribute the residual proceeds from the placing (after repayment of Vodafone's outstanding borrowings) towards an issue of new equity shares by VI
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New Delhi: Debt-ridden telecom firm Vodafone Idea on Thursday said its board will consider a proposal to raise Rs 2,000 crore from entities belonging to promoter Vodafone Group. The development follows Vodafone Group's announcement to sell a 3 per cent stake in Indus Towers to clear its debt of $101 million or about Rs 856 crore and use the residual amount to pay outstanding dues of its Indian venture Vodafone Idea.
" … a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 9 December 2024, inter-alia, to consider proposal for raising of funds not exceeding Rs 2,000 crore, by way of issuance of equity shares and / or convertible securities on a preferential basis to one or more entities belonging to Vodafone Group," the company said in a filing. British telecom firm Vodafone's 3 per cent stake in Indus Towers is valued at around Rs 2,800 crore.
The company had announced that after settling the debt, it intends to contribute the residual proceeds from the placing (after repayment of Vodafone's outstanding borrowings) towards an issue of new equity shares by Vi once the terms of such a capital raise have been evaluated and decided on by the Board of Directors of Vi. In VIL, Vodafone Group holds a 22.56 per cent stake, Aditya Birla Group 14.76 per cent and the government has 23.15 per cent stake.
