Vodafone Idea said Wednesday that its board will meet on December 9 to explore a plan to raise up to Rs 2,000 crore by giving preference to Vodafone Group companies when issuing convertible instruments or equity shares. A notification to the exchanges said that this proposed fundraising will be a part of the board’s routine financial matters proceedings.
This comes after the British telecom company Vodafone Group Plc declared its intention to sell off all three percent of its shares in Indus Towers Ltd. through open market sales. Following a share buyback, Indus Towers, the biggest mobile tower installation company in India, became a subsidiary of Bharti Airtel Ltd. in August. Bharti Airtel, under the leadership of Sunil Bharti Mittal, owned 50% of the business as of September.
Vodafone Plans for fundraising to reduce financial hardship
As part of its efforts to resolve financial difficulties and fulfill its obligations to Indus Towers under Master Services Agreements (MSAs), Vodafone Idea has requested the capital increase. Unpaid debts owed to Indus Towers are anticipated to be settled with the revenues.
Through an expedited book-building procedure, parent firm Vodafone PLC announced plans to sell its remaining 3% holding in Indus Towers, or 79.2 million shares. Usha Martin Telematics (0.74 percent) and Omega Telecom Holdings Private Limited (2.26 percent) own the share. The first use of the sale’s proceeds will be to pay back Vodafone’s $101 million in existing debts that are secured by its assets in India.
About the company
Vodafone Idea Ltd. is a prominent telecom service provider in India that provides broadband, data, and mobile phone services. With an emphasis on network growth and digital connectivity, it provides 4G services to millions of users throughout India. Vodafone Idea’s operational revenue over the last 12 months was Rs. 42,687.30 Cr. A pre-tax margin of -71% need improvement, a 1% yearly revenue increase is not fantastic, and NULL In terms of technical analysis, the stock is trading below its major moving averages. To achieve any significant progress, it must eliminate these levels and maintain its position above them.
