Idea Cellular, which is in the last leg of completing its proposed merger with Vodafone India, got shareholders’ nod on Tuesday to change the name of the company to Vodafone Idea Ltd, and also raise funds of up to Rs 150 billion.
The company had convened an extraordinary general meeting on Tuesday to seek shareholder nod for the same. Shareholders gave nod to raise up to Rs 150 billion on a private placement basis by way of non-convertible securities, including, but not limited to, non-convertible debentures, in one or more tranches.
Idea did not share details of what the funds would be used for in the exchange filing. Both Vodafone and Idea, however, have been raising money (through sale of captive towers, stake sales and equity infusions) for the past few months to pare combined debt, which stood at more than Rs 1.14 trillion at the end of March.
The name change, however, would be subject to approval of the Union government.
The combined entity would be the largest telecom firm in the country, with an almost 42 per cent customer market share and 37 per cent revenue market share. – Business Standard