Vodafone Idea board to consider fundraising proposals on February 27
The board of Vodafone Idea will meet on February 27 to consider fundraising proposals, the company said in a BSE filing on Thursday. The trading window for dealing in the securities of the company will remain closed from February 23 to February 29.
The board of Vodafone Idea will meet on February 27 to consider fundraising proposals, Aditya Birla Group's telecom service provider said in a BSE filing on Thursday. Multiple options would be considered to raise funds, like equity or debt instruments.
“We wish to inform you that a meeting of the Board of Directors of Vodafone Idea Limited (the Company) will be held on Tuesday i.e. 27th February 2024, inter alia, to consider and evaluate any proposals for raising funds in one or more tranches by way of a rights issue, further public offer, private placement including preferential allotment, qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate,” the company said in its stock exchange filing.
Vodafone Idea shares closed 6.27% higher at ₹16.28 per share on the BSE on Thursday.
The capital raise could be by way of the issue of equity shares or by way of any instruments including “securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds”.
Earlier in the day, Aditya Birla Group chairman Kumar Mangalam Birla had said efforts are on to rope in external investors. However, he refrained from giving a fixed timeline for the addition of external investors. "We are making good progress but can't put in a timeline," Birla told PTI.
Vodafone Idea's net loss reduced to ₹6,986 crore for the December 2023 quarter. The improvement in the company's performance was aided by ₹755.5 crore one-time exceptional gain. The telecom service provider's average revenue per subscriber also increased in Q3 FY24. The company's net loss stood at ₹7,990 crore in the year-ago period.
While announcing the company's Q3FY24 results, Vodafone Idea CEO Akshaya Moondra said: "We remain engaged with various parties for fundraising to make required investments for network expansion, including 5G roll-out."
Despite improvement in managing losses, the company's revenue from operations remained nearly flat at ₹10,673.1 crore year-on-year. The entry of Reliance Jio and the strengthening of Bharti Airtel had made the survival of the telecom company difficult, according to industry observers.
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