Telecommunications operator Vodafone Idea said on Friday that its board approved plans to raise up to 25 billion rupees through a combination of issuance of shares and non-convertible bonds (NCD).
In a regulatory presentation, Vodafone Idea said: “We wish to inform you that the Company’s Board of Directors … approved the raising of funds through: (a) issuance of shares or securities convertible into shares, Global Certificates of Deposit, Certificates of US deposits, convertible foreign currency bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants entitling warrant holders to apply for equity shares or a combination thereof up to a total amount of Rs 15,000 crore through a public issue, preferential assignment, private placement, placement of qualified institutions or through any other modality allowed in one or more tranches; and (b) issuance of unsecured and / or guaranteed obligations, not convertible up to a total amount of Rs. 15 billion rupees, by public offering or private placement or otherwise, in one or more tranches. “
The development comes after the Supreme Court verdict ordering all telecom operators to pay 10 percent of total adjusted gross income (AGR) related fees this year, and the rest of the payments in 10 installments from the next fiscal year.
According to the government, Vodafone Idea has outstanding fees of Rs 58,250 crore until 2016-17, of which the company has paid Rs 7,854 crore to the Telecom Department.
Vodafone Idea shares ended at Rs 12.01, a drop of Rs 0.55 or 4.38 percent on the BSE.
