New Delhi: Vodafone Concept (VI), amid its monetary challenges has taken a major step in the direction of addressing its debt burden. The board of the telecom operator has given the inexperienced gentle to a proposal aimed toward elevating ₹2075 crore from its promoter, the Aditya Birla Group, as disclosed in a regulatory submitting on Saturday.
The corporate said in a regulatory submitting that it plans to hunt approval from shareholders throughout a rare basic assembly scheduled for Might 8 concerning the proposed measures. (Additionally Learn: India’s Meals Processing Sector Poised To Attain USD 535 Billion By 2025-26)
Additional, the corporate in its submitting talked about “The Vodafone Concept board has permitted issuance of as much as 1,395,427,034 fairness shares of face worth of ₹10 every at a problem worth of ₹14.87 per fairness share (together with a premium of ₹4.87 per fairness share), aggregating to ₹2,075 crore to Oriana Investments Pte. Ltd (Aditya Birla Group entity forming a part of the promoter group), on a preferential foundation,”. (Additionally Learn: Over 20,000 Zomato Riders To Present Medical Assist In Roadside Emergencies: CEO Deepinder Goyal)
The submitting additionally said that the board has given its approval for elevating the licensed share capital of the corporate. This enhance includes elevating it from the present ₹75,000 crore, which is split into ₹70,000 crore of fairness share capital and ₹5,000 crore of desire share capital, to ₹1 lakh crore.
The elevated authorised share capital of the corporate might be divided into ₹95,000 crore fairness share capital and ₹5,000 crore desire share capital. The corporate obtained shareholders nod for elevating as much as ₹20,000 crore by issuance of securities in a rare basic assembly (EGM) held on April 2.
Vodafone Concept has plans to lift ₹45,000 crore by a mixture of fairness and debt because it seeks to match companies provided 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 yr, the corporate’s board permitted elevating as much as ₹20,000 crore in fairness from promoters and different traders by June, because it regarded to shore up funds for the much-delayed 5G rollout and strengthening 4G companies.
Vodafone Concept, wherein the federal government now additionally holds over 33% fairness stake, has been preventing a determined battle for survival. It has a debt of ₹2.1 lakh crore, and is reporting quarterly losses on account of falling subscriber base. Trai’s newest information 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 factors by Jio and Airtel. (With PTI Inputs)
