Cash-strapped telecom operator Vodafone Idea is planning to raise up to Rs 500 crore from Vodafone Group, one of the promoters.
“A board meeting is scheduled to be held on Wednesday to consider among other things a proposal for raising of funds aggregating up to Rs 500 crore by way of issuance of shares and/or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group (one of the promoters of the company),” the telecom operator said in a filing on June 19.
On Friday, shares of Vodafone Idea settled at Rs 8.21 apiece on the BSE, down 3.53 percent, while the benchmark Sensex closed 135.37 points or 0.26 percent lower at 51,360.42.
Reportedly, e-commerce giant Amazon is also in the running to invest up to Rs 20,000 crore in the struggling telecom operator.
Vodafone Idea has been on the hunt for investors to raise fresh capital to pay down its debt and invest in its network after returning from the brink of bankruptcy following help from the government.
The company had allowed the government to convert a major chunk of its adjusted gross revenue due and interest payments into equity. However, persistent loss of subscribers have weighed on the company even as the sector has managed to substantially raise tariffs in the past three years. Moneycontrol