NEW DELHI: Cash-strapped telecom operator Vodafone Idea on Friday said that its board has approved a fund raising plan of up to Rs 25,000 crore as the company tries to pay off the hefty dues it owes to the government.
In a regulatory filing, the company said: “We wish to inform you that the board of directors, at its meeting held today has, subject to the approval of shareholders’ (where applicable) and / or other requisite regulatory / statutory approvals, approved the raising of funds. However, the total raising of funds shall not exceed Rs 25,000 crore.”
The funds will be raised through a combination of equity and debt instruments and the total fund-raising will not exceed Rs 25,000 crore.
The fund raising may be done through public issue, preferential allotment, private placement, qualified institutional placements or through any other permissible mode in one or more tranches, the company said.
The decision comes two days after the Supreme Court said directed telecom operators to clear AGR (adjusted gross revenue)-related dues in instalments in 10 years. The first instalment of 10 per cent needs to paid by March 2021.
Vodafone Idea has to pay Rs 50,000 crore through yearly instalments, plus the accrued interest. It has already paid an aggregate amount of Rs 7,854 crore towards AGR dues.
Shares of Vodafone Idea finished 4.38 per cent lower at Rs 12 on the BSE. While, it settled 3.19 per cent down at Rs 12.15 on the NSE.
(With agency inputs)