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Board approves fundraising of up to Rs 45,000 crores at Vi

Vodafone Idea Board approved fundraising of up to Rs 45,000 crore through equity and debt, said the telco in an exchange filing on February 27.

The company’s board approved equity fund raise of upto Rs 20,000 crores by way of issue of Equity Shares or by way of issue of any instrument or security, including convertible debentures, warrants, or other securities convertible into Equity Shares, Global Depository Receipts, American Depository Receipts or Foreign Currency Convertible Bonds or by way of a composite issue of non-convertible debentures with or without warrants by way of a further public offer, private placement including preferential issue, qualified institutions placement, or through any other permissible mode or any combination thereof and in one or more tranches.

The Board also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise. Vi will call for a meeting of its shareholders on April 2, 2024 and post-shareholder approval it expects to complete the equity fund raise in the coming quarter.

The promoters will also participate in the proposed equity raise, as committed earlier.

In addition, the telco remains actively engaged with its lenders for tying-up the debt funding, which will follow the equity fund raise. Through a combination of equity and debt, the telco plans to raise around Rs. 45,000 crores. Vi’s bank debt currently stands at less than Rs. 4,500 crores.

The equity and debt fund raising will enable the telco to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion. These investments will enable the telco to improve its competitive positioning and offer an even better customer experience.

The proposed fund raise follows a marked improvement in operating metrics. The telco has managed to grow its 4G subscriber base and ARPUs consecutively for the last 10 quarters. Further, the telco remains focused on providing competitive data and voice experience at all locations where it is present. Vi is also steadfast in building a differentiated digital experience adding several digital offerings in the recent quarters. The telco has consistently shown an improvement in performance even with limited investments. With the proposed fund raise and the positive operational developments, the telco is confident of effectively competing in the market.

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CT Bureau

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