Debt-ridden telecom company Vodafone Idea announced on Thursday, December 5, that its board will consider a proposal to ₹2,000 crore from entities belonging to promoter Vodafone Group.
The development follows Vodafone Group’s announcement to sell a 3 percent stake in Indus Towers to pay down its debts of about $101 million. ₹856 crore and use the remaining amount to pay outstanding dues of his Indian venture Vodafone Idea.
“…a meeting of the Board of Directors of the Company is scheduled for Monday, December 9, 2024, inter alia, to consider proposals for raising funds not to exceed ₹2,000 crore, by way of issue of equity shares and/or convertible securities on a preferential basis to one or more entities belonging to the Vodafone Group,” the company said in a filing.
British telecom company Vodafone’s 3 percent stake in Indus Towers is valued at approx ₹2,800 crore.
The company had announced that, after repaying debt, it plans to contribute the remaining proceeds from the placement (after repayment of Vodafone’s outstanding loans) to an issuance of new shares by Vi, once the terms of an such capital increase has been evaluated and decided. by the Board of Directors of Vi.
In VIL, Vodafone Group has 22.56 percent stake, Aditya Birla Group 14.76 percent and the government has 23.15 percent stake.
