Debt-ridden telecom agency Vodafone Concept on Saturday stated its board has accepted elevating Rs 2,075 crore from promoter Aditya Birla group and rising its authorised share capital to Rs 1 lakh crore. The corporate will search shareholders’ approval at a rare normal assembly on Might 8 on the proposals, it stated in a regulatory submitting.
The Vodafone Concept board has accepted “issuance of as much as 1,395,427,034 fairness shares of face worth of Rs 10 every at a difficulty value of Rs 14.87 per fairness share (together with a premium of Rs 4.87 per fairness share), aggregating to Rs 2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming a part of the promoter group), on a preferential foundation,” the submitting stated.
The elevated authorised share capital of the corporate can be divided into Rs 95,000 crore fairness share capital and Rs 5,000 crore desire share capital. The corporate acquired shareholders nod for elevating as much as Rs 20,000 crore by issuance of securities in a rare normal assembly (EGM) held on April 2. Vodafone Concept has plans to boost Rs 45,000 crore via a mixture of fairness and debt because it seeks to match providers supplied by rivals Reliance Jio and Bharti Airtel and arrest an alarming and extended subscriber churn.
The fundraise will arm VIL to enhance aggressive positioning within the Indian telecom market, the place it trails Jio and Bharti Airtel, by a large margin. In February this 12 months, the corporate’s board accepted elevating as much as Rs 20,000 crore in fairness from promoters and different traders by June, because it seemed to shore up funds for the much-delayed 5G rollout and strengthening 4G providers.
Vodafone Concept, wherein the federal government now additionally holds over 33 per cent fairness stake, has been combating a determined battle for survival. It has a debt of Rs 2.1 lakh crore, and is reporting quarterly losses as a result of falling subscriber base. Trai’s newest knowledge confirmed that Vodafone Concept continued to bleed on the subscriber entrance. VIL misplaced 15.2 lakh wi-fi subscribers, plunging its cellular subscriber base to 22.15 crore in January, in sharp distinction to subscriber positive aspects by Jio and Airtel.
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