New Delhi, September 4: Vodafone Idea, one of the three major private telecom operators in India, will raise Rs 25,000 crore from the market in a bid to revive its fortunes. The plan to raise the capital was approved at the Board meeting of Birla group company on Friday. The measure would be finalised at the Annual General Meeting scheduled on September 30. AGR Dues Row: Supreme Court Gives Telecom Companies a Period of 10 Years to Clear Their AGR Dues, Asks Telcos to Pay 10% by March 31, 2021.
The struggling telecom giant has decided to raise the requisite amount in two ways - through issuance of public equity shares and non-convertible debentures (NCDs). Both the measures would allow the company to raise a maximum of Rs 15,000 crore each.
The proposed fundraising model would be adopted after approval from the majority shareholders at the AGM meeting scheduled at end of the month.
The move by Vodafone Idea comes days after the Supreme Court allowed the defaulting telcos to pay their pending Adjusted Gross Revenue (AGR) in a period of 10 years. The extension of deadline, say experts, has provided a fresh breather to the private telecom operators.
According to an assessment by the Department of Telecommunications, (DoT), Vodafone Idea owed a total of Rs 58,254 crore. As per the government, the operator now owes balance AGR dues of around Rs 50,399 crore.
(The above story first appeared on LatestLY on Sep 04, 2020 09:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).