Debt-ridden Vodafone Concept on Saturday stated its board has accredited elevating of Rs 2,075 crore from one in all its promoters, Aditya Birla Group, and rising its authorised share capital to Rs 1 trillion. The approvals are a part of the corporate’s plans to boost Rs 20,000 crore of capital to fund its operations and decrease its debt burden.
The corporate will search shareholders’ approval at a rare normal assembly on Might 8 on the proposals, it stated in a regulatory submitting.
The promoter’s infusion is a part of Vodafone Concept’s broader two-part fundraising plan totaling Rs 45,000 crore by a mixture of fairness and debt. It plans to boost Rs 20,000 crore through fairness by June-end, and observe that up with round Rs 25,000 crore from lenders.
The cash-strapped telcom service supplier expects the corpus will assist repay distributors, strengthen its 4G community and fund the launch of 5G companies to assist compete with greater and worthwhile rivals Reliance Jio and Bharti Airtel.
The Vodafone Concept board has accredited “issuance of as much as 1,395,427,034 fairness shares of face worth of Rs 10 every at a problem value of Rs 14.87 per fairness share (together with a premium of Rs 4.87 per fairness share), aggregating to Rs 2,075 crore to Oriana Investments (Aditya Birla Group entity forming a part of the promoter group), on a preferential foundation”, the submitting stated.
The board additionally accredited a rise within the authorised share capital of the corporate from current Rs 75,000 crore, divided into Rs 70,000 crore fairness share capital and Rs 5,000 crore desire share capital, to Rs 1 trillion, the submitting stated.
The elevated authorised share capital of the corporate can be divided into Rs 95,000 crore fairness share capital and Rs 5,000 crore desire share capital.
Of its complete gross debt of Rs 2.15 trillion, over 90 per cent is owed to the federal government as spectrum dues. The corporate’s financial institution debt at the moment stands at lower than Rs 4,500 crore.
In FY26, as soon as the moratorium on regulatory dues is over, Vodafone Concept may have an obligation to pay round Rs 28,000 crore to the federal government. From FY27 onwards, Vodafone Concept may have a debt obligation of over Rs 41,000 crore to the federal government.
Based mostly on the corporate’s free cashflow place, weakening of market share, and absence of fund increase, Vodafone Concept is predicted to have a niche of Rs 30,000 crore FY27 onwards, in keeping with analysts.
Vodafone Concept’s internet loss for the October-December quarter narrowed to Rs 6,986 crore from Rs 8,738 crore within the previous quarter. Income from operations rose 0.5 per cent year-on-year, owing to enchancment in subscriber combine, 4G subscriber additions and enhance in entry degree tariffs.
