Updated April 2nd, 2024 at 19:34 IST

Vodafone Idea seeks shareholder nod to rase Rs 20,000 crore

In a regulatory filing to the BSE, Vodafone Idea announced the holding of the EGM, stating that the results of the voting would be communicated separately.

Reported by: Business Desk
Vodafone Idea | Image:X Photo
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Troubled telecom operator Vodafone Idea (VIL) convened an extraordinary general meeting (EGM) to seek shareholders' nod for raising up to Rs 20,000 crore through the issuance of securities on Tuesday.

In a regulatory filing to the BSE, Vodafone Idea announced the holding of the EGM, stating that the results of the voting would be communicated separately.

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The meeting, conducted via Video Conferencing (VC) / Other Audio Visual Means (OAVM) in compliance with guidelines from the Ministry of Corporate Affairs and Securities and Exchange Board of India, deliberated on the agenda item related to the "issuance of securities up to an aggregate amount of Rs 20,000 crore."

The move follows the company's announcement in February this year, wherein its board approved plans to raise up to Rs 20,000 crore in equity from promoters and other investors by June. The funds are intended to bolster the company's finances for the much-awaited 5G rollout and to enhance its 4G services.

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With a debt burden of Rs 2.1 lakh crore and recurring quarterly losses, Vodafone Idea is grappling with a dire financial situation. The company's subscriber base has been steadily declining, with recent Trai data revealing a loss of 15.2 lakh wireless subscribers in January alone, bringing its mobile subscriber count to 22.15 crore.

In a bid to improve its competitive position in the fiercely competitive Indian telecom market, where it trails behind Reliance Jio and Bharti Airtel, Vodafone Idea aims to raise Rs 45,000 crore through a combination of equity and debt. The capital infusion is crucial for the company to match the offerings of its rivals and stem the tide of subscriber attrition.

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(With PTI inputs)
 

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Published April 2nd, 2024 at 19:34 IST