Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Debt-laden Vodafone Idea to raise up to $3.4 billion in fresh funds

Stock Markets Sep 04, 2020 11:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Man speaks on his mobile phone as he walks past the logos of Vodafone painted on a roadside wall in Kolkata
 
VODA
-4.96%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VOD
-2.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

BENGALURU (Reuters) - Vodafone (NASDAQ:VOD) Idea Ltd (NS:VODA) said on Friday it would raise up to 250 billion Indian rupees ($3.41 billion) in fresh capital as the Indian telecom operator tries to pay off the hefty dues it owes to the government.

The loss-making carrier has been ordered by the country's top court to pay roughly 500 billion Indian rupees ($6.81 billion) in dues to the government over a ten-year period and it has so far paid 78.54 billion rupees.

Vodafone said it would raise up to 150 billion rupees through debentures and an equal amount by issuing shares and warrants, but together will not exceed 250 billion rupees.

The plan to raise fresh capital also comes as the third largest telecom operator in India grapples with an erosion in subscriber base due to a price war triggered by Reliance Industries ' (NS:RELI) telecoms venture Jio Infocomm.

Vodafone lost 4.7 million subscribers in May alone, data from the country's telecom regulator showed, while its gross debt stood at 1.19 trillion Indian rupees as of June end.

The joint venture between Britain's Vodafone Plc (L:VOD) and India's Idea Cellular had last month reported its eight straight quarterly loss and unveiled a plan to reduce costs by 40 billion rupees a year over 18 months.

The fund-raise plan will be considered at the annual general meeting of shareholders later this month, the company said.

($1 = 73.2250 Indian rupees)

Debt-laden Vodafone Idea to raise up to $3.4 billion in fresh funds
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Atul Pandya
Atul Pandya Sep 04, 2020 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's good decision
ECL SALES
ECL SALES Sep 04, 2020 11:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All VODAFONE INDIA need to do is do a ZOOZOO kinda GRAND ADVERTISEMENT. GOVT is ready to support anyone so as to make market multimplayer. Vodafone India has to do buy services of rhw world's best MARKETING/ADVERTISING minds. Rest would be history
Tm Ho
Tm Ho Sep 04, 2020 11:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Modi + Ambani undercutting with unfair subsides
sabu sabu
sabu sabu Sep 04, 2020 10:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They may able to raise funds but no clarity how to revive business in the medium term and make company profitable
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email