The Board of Directors of Vodafone Idea have approved the beleaguered telco to raise up to Rs 25,000 crore in funds.
In filings with the stock exchanges, Vodafone Idea said that the funds can be raised through the issue of equity shares as well as unsecured or secured debentures. Neither of them can be more than Rs 15,000 crore, and combined exceed Rs 25,000 crore.
Raising of the funds will be through the "Issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts, foreign currency convertible bonds, convertible debentures, warrants, composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares or a combination thereof up to an aggregate amount of Rs. 15,000 crore by way a public issue, preferential allotment, private placement, qualified institutions placement or through any other permissible mode in one or more tranches,” the filing said.
It also mentioned, "issuance of unsecured and/or secured, non-convertible debentures up to an aggregate amount of Rs 15,000 crore, by way of public offering or private placement basis or otherwise, in one or more tranches".
The fund-raising plans are subject to shareholders’ nod and other approvals.
The crucial decision comes just days after the Supreme Court directed all telecom operators to pay 10% of total adjusted gross revenue (AGR)-related dues this year, and rest of the payments in 10 instalments, starting from next fiscal year.
The fund-raising will throw a potential lifeline to the cash-strapped telco, which suffered massive losses, has been losing subscribers and ARPUs, and facing outstanding AGR dues of about Rs 50,000 crore.
There were reports of Amazon and Verizon being interested in investing in the telecom company, but Vodafone Idea has since denied the news.
Vodafone Idea has Rs 50,400 crore in dues to the government, after paying off Rs 7,854 crore so far.
Shares of Vodafone Idea finished 4.38% lower at Rs 12 on the BSE on Friday. It settled 3.19% down at Rs 12.15 on the NSE.