The board of directors of the company decided to raise the funds via equity share sale of up to Rs 15,000 crore and another tranche of up to Rs 15,000 crore via a public offer or private placement of non-convertible debentures. However, the total will not exceed Rs 25,000 crore, the company said in a statement to the stock exchanges.
The relaunch comes even as the parent Vodafone Group does not intend to put any equity into Vodafone Idea.
The company is also considering credit enhancement to provide additional comfort to investors from across the world to ease off its debt worth Rs 1.7 trillion, The Economic Times reported.
Vodafone Idea’s Ebitda (earnings before interest, depreciation, tax, and amortisation) of Rs 4,100 crore in the June quarter of FY21 was not enough to pay for its capex, interest, deferred spectrum, and the adjusted gross revenue
(AGR) dues, all of which amount to over Rs 30,000 crore annually.
The company was hit hard by the Supreme Court ruling in October last year, when it was asked to pay Rs 58,254 crore of AGR dues to the government. However, on Tuesday, the court gave 10 years to all the telecom companies
to pay their past dues. Vodafone Idea
has paid Rs 7,854 crores as AGR to the Department of Telecommunications.
In the first quarter of the financial year, Vodafone Idea’s quarterly loss increased to Rs 25,460 crore as compared to Rs 11,643 crore reported in the March quarter of FY20.