New Delhi: The board of administrators of Vodafone Concept will on 6 April think about issuing fairness or convertible securities of as much as ₹2,075 crore on a preferential foundation to a number of promoter group entities, the corporate advised BSE in a discover late Wednesday.
This follows shareholder approval of the third largest service’s proposal to boost ₹20,000 crore from issuing securities.
Vodafone Concept’s board had authorized a ₹45,000-crore fundraising initiative, together with the ₹20,000-crore equity-based capital infusion from current traders, on 27 February. With the approval in place, the telecom firm is anticipated to finish the fairness fundraising by the top of June.
Current promoters of the debt-laden telecom providers supplier can be concerned within the fairness fundraising, the corporate had mentioned earlier. It stays unclear whether or not promoters will embody Britain’s Vodafone Group Plc as effectively.
Following the fairness fundraise, Vodafone Concept will look to boost debt, taking the entire quantity of funding to as much as ₹45,000 crore. The fundraise is essential for it to start 5G providers. The telecom operator stays the one one with out consumer-end 5G providers, after each Reliance Jio and Bharti Airtel rolled out the providers throughout the nation via final 12 months.
The cash-strapped, loss-making cell phone providers supplier is the laggard amongst friends with its largest problem being a ₹2.1 trillion debt and falling subscriber base. As per the newest knowledge from Trai, the service misplaced 1.5 million customers in January this 12 months, up from a 1.4 million subscribers it misplaced in December 2023.
Its whole subscriber base stood at 221.5 million as of January, decrease than the second-largest telecom agency Airtel which has 382.5 million customers, and market chief Reliance Jio that has 464 million customers.
Shares of Vodafone Concept had been at ₹13.70 on the NSE in early commerce on Thursday, up 1% from the earlier shut in a largely constructive market.
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Printed: 04 Apr 2024, 09:27 AM IST
Supply: Live Mint