Jobaaj Stories
Just before the 5G wave is about to hit along with the auction for the 5G spectrum, Vodafone Idea is all set to raise additional funds of Rs. 500 crore.
Vodafone Idea's board is to meet on 22nd June 2022, Wednesday to consider a fundraising infusion plan from its Vodafone Group Plc.
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“We require Rs 25,000 crore of additional investment which the board has approved. Our promoters have recently put in Rs 4,500 crore, so we need about Rs 20,000 crore more which will be raised in a combination of debt and equity,” Ravinder Takkar said in a meeting.
According to sources, the investment sought will be used to improve VI's 4G network and to cater towards the CAPEX required for the 5G era in the coming 3 to 4 years.
Out of Rs 4,500 crore, the company has received investments of Rs. 3,375 crore from its parent company, Vodafone Group, and Rs.1,125 crore from Aditya Birla group.
Moreover, VI informed the stock exchange that Rs 500 crore will be raised via equity shares or convertible warrants on a preferential basis belonging to Vodafone Group.
It is interesting to note that Vodafone Idea had opted to convert the interest due on adjusted gross revenue (AGR), towards government equity of 33% stake. However, the parent company along with the Aditya Birla group holds a 50% stake retaining controllership.
On 21st July 2022, VI's stock closed at Rs. 8.45 (+6.29%), after making a high of Rs. 8.60.
-by Gautam
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