Vodafone Idea Limited (VIL) has received support from shareholders. The company’s shareholders have approved the proposal to raise up to Rs 20,000 crore by issuing securities. An extraordinary general meeting (EGM) was called last Tuesday to seek shareholders’ approval for the capital raising. According to Bhasha news, VIL informed BSE about the result of EGM voting, in which a total of 99.01 percent votes were cast in favor of the proposal related to issue of securities up to an aggregate amount of Rs 20,000 crore.
There is competition with Jio and Bharti Airtel
According to the news, this approval has been received at a time when the debt-ridden company is planning to raise Rs 45,000 crore through shares and loans. The aim of this move is to match the services offered by competitors Reliance Jio and Bharti Airtel. The capital raise will also help VIL improve its competitive position in the Indian telecom market, where it lags behind Jio and Bharti Airtel by a wide margin. The company is preparing to raise capital and focus on improving other services including 5G.
According to the news, Vodafone-Idea can start its 5G service this year. Earlier in the year 2022, along with Airtel and Reliance Jio, Vodafone Idea Limited had also participated in the 5G spectrum auction, but the company has not been able to start 5G service yet.
Approval was received from the board in February
Vodafone Idea Limited had received approval from the board of directors in February 2024 to raise up to Rs 20,000 crore. The board has also entrusted the management with the responsibility of appointing bankers, advisors and intermediaries to raise funds. Shares of Vodafone Idea Limited have also seen a lot of improvement in recent times.
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