Vodafone Idea approves rights issue of Rs 25,000 crore

Last Updated: Wed, Mar 20, 2019 16:32 hrs
Idea Cellular - Vodafone

Vodafone India's board on Wednesday approved the plan to issue equity shares with a face value of Rs 10 at Rs 12.50 per equity share as rights issue aggregating up to Rs 25,000 crore.

The board also fixed April 2 as the record date for the purpose of determining the shareholders who will be eligible to apply for the issue, the company informed stock exchanges in regulatory filings.

The rights issue entitlement ratio is 87 shares for every 38 shares held by the eligible shareholders of the company on the record date.

The issue will open on April 10 and close on April 24.

"We are well placed to exploit the growth opportunities ahead of us," said company's CEO Balesh Sharma. "The proceeds from the rights issue coupled with the monetisation of our stake in Indus will allow us to make the required investments in the business to achieve our strategic goals."

Vodafone Idea is raising funds for expanding 4G capacity and working towards building future-proof networks. On February 6, the company reported a loss of Rs 5,004 crore for the quarter ended December 2018.

The gross debt stood at Rs 1.23 lakh crore, including deferred spectrum payment obligations due to the government of Rs 91,480 crore.

Cash and cash equivalents totalled Rs 8,900 crore, resulting in net debt of Rs 1.14 lakh crore.

The financials of telecom majors have been adversely hurt after the entry of Reliance Jio and falling tariffs.