Vodafone Idea on Thursday denied that there was any proposal from Amazon and Verizon Inc to invest in the telecom company for $4 billion. After the BSE sought a clarification from the telecom operator, Vodafone Idea said that there was no such proposal.
“As part of corporate strategy, the Company constantly evaluates various opportunities for enhancing the stakeholders’ value. As and when such proposals are considered by the Board of Directors of the Company warranting disclosures, the Company shall comply with the disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulation”),” it said.
“Currently, there is no proposal as reported by the media that is being considered at the Board. We wish to reiterate and clarify the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price sensitive information,” it added.
This came ahead of the Board of Directors meeting on Friday to discuss and evaluate proposals for raising funds in one or more tranches through public issue, issue of equity shares or securities among other options.
It had been reported that Amazon and Verizon Inc were waiting for a resolution in the AGR matter, which came earlier this week.
Vodafone Idea presently owes Rs 50,400 crore in licence fees, spectrum usage charges, interest and penalties. This is after it has paid off Rs 7,854 crore. The Supreme Court said that the telecom companies would have to pay 10% of their dues by March 2021 and would then get 10 years to pay off their dues in yearly instalments.
Shares of Vodafone Idea on Thursday zoomed nearly 30% on Thursday ahead of its board meeting on Friday to consider fund raising through various means.
The Economic Times reported that the telecom company is looking at raising $1-1.5 billion through equity. “In the first leg, the telco is looking to raise funds through equity. It will later raise money through the debt route and tap bond markets,” a source told the newspaper.