MUMBAI – Vodafone Idea Ltd has received shareholders’ consent for its proposal to raise Rs 20,000 crore through a combination of equity and equity-linked securities.
On February 27, the company’s board had approved the proposed fundraising plan.
With shareholders’ approval in place, the company expects to complete the equity fund raise in the current quarter. The promoters will also participate in the proposed equity raise, as committed earlier, the company had said.
Vodafone Idea remains actively engaged with its lenders for tying up debt funding, which will follow the equity fundraising. Through the combination of equity and debt, the cash-strapped operator plans to raise around Rs 45,000 crore.
The company’s bank debt currently stands at less than Rs 4,500 crore.
As of December end, Voda Idea’s gross debt stood at Rs 2.15 lakh crore, comprising deferred spectrum payment obligations of Rs 1.38 lakh crore, AGR liability of Rs 69,020 crore due to the government, optionally convertible debentures amounting to Rs 1,660 crore, besides dues towards banks and financial institutions.
The company has managed to grow its 4G subscriber base and average revenue per user (ARPU) consecutively for the last 10 quarters. The improving operating metrics prompted the company to tap the market for raising funds.
Voda Idea’s 4G subscriber base increased to 125.6 million from 121.6 million a year ago.
The company managed to trim its consolidated net loss to Rs 6,986 crore in the quarter ended December, from Rs 7,990 crore a year ago, and Rs 8,738 crore a quarter ago.
Shareholders’ approval boosted sentiment and saw shares of Vodafone Idea trading 2.3% higher on the BSE at Rs 13.74.
