burdened with debt The board of directors of telecom company Vodafone Idea will meet on April 6 to decide on the proposal to issue equity shares or convertible securities on preferential basis. Earlier, in the extraordinary general meeting (EGM) held on April 2, the company’s shareholders had approved raising up to Rs 20,000 crore by issuing securities. Vodafone Idea (VIL) said in the information given to the stock market, “We would like to inform you that the meeting of the board of directors of the company is going to be held on Saturday, April 6.” In this, the proposal to issue equity shares and/or convertible securities on preferential basis will be considered.” Market experts say that the impact of this decision will be seen on the company’s shares today. Shares may rise. There was a rise in the stock on Wednesday also. The share is trading at Rs 13.60.
Preparation to compete with Reliance Jio and Airtel
VIL in the notice cited the voting results of the EGM, where 99.01 per cent of votes were cast in favor of the resolution relating to ‘issuance of securities up to an aggregate amount of Rs 20,000 crore’. The approval comes at a time when the debt-laden company is planning to raise Rs 45,000 crore through equity and debt to match the services offered by rivals Reliance Jio and Bharti Airtel and retain long-term customers. migration can be stopped.
The company is still doing business in loss
It is noteworthy that the company had said in February this year that its board of directors has approved raising equity capital of up to Rs 20,000 crore from promoters and other investors by June. The company needs capital for 5G implementation and strengthening 4G services. Vodafone Idea has a debt of Rs 2.1 lakh crore. The company is not recovering from quarterly losses and its customers are decreasing every month.
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