On December 9, the board of Vodafone Idea (Vi) will discuss a proposal to raise Rs 2,000 crore from promoter Vodafone Group businesses through a preferential issue.
The debt-laden telco's board will explore issuing equity shares and/or convertible securities, Vi stated in an exchange filing on Thursday. The news comes a day after British telecom giant Vodafone PLC revealed plans to dispose its interest in mobile tower infrastructure company Indus Towers by selling its remaining 3%.
The transaction, valued at Rs 2,840 crore, will allow Vodafone to clear its outstanding debts of $101 million, or approximately Rs 856 crore, and utilize the remaining funds to pay the debts of its Indian venture, Vodafone Idea. In June, Vodafone sold 484.7 million shares, or an 18% stake, in Indus Towers through block sales, collecting Rs 15,300 crore.
Vi's promoters are the Vodafone Group (22.56%) and the Aditya Birla Group (14.76%). The government holds a 23.15 percent stake.
Vi's overall payment commitments to the government were Rs 2.12 trillion at the end of the second quarter, including Rs 1.41 trillion in postponed spectrum payment obligations.The telco also has an Adjusted Gross Revenue (AGR) debt of Rs 70,320 crore to the government.
