In Short:
On Tuesday, Vodafone Idea held a meeting to ask shareholders for approval to raise up to Rs 20,000 crore by issuing securities. The voting results will be shared separately. Earlier this year, the struggling telecom operator had announced plans to raise funds to improve 4G services and prepare for 5G rollout. Vodafone Idea is facing financial challenges, losing subscribers, and trying to compete with rivals like Jio and Airtel.
Telecom Operator Vodafone Idea Holds Extraordinary General Meeting to Seek Shareholders’ Approval for Fundraising
Troubled telecom operator Vodafone Idea announced on Tuesday that it conducted an extraordinary general meeting to seek shareholders’ approval to raise up to Rs 20,000 crore by issuing securities. The results of the voting will be intimated separately.
Meeting Details
“An Extra-ordinary General Meeting of Vodafone Idea Limited was held on Tuesday, April 2, 2024, at 3.00 p.m. through Video Conferencing (VC) / Other Audio Visual Means (OAVM) in accordance with the relevant circulars issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India,” Vodafone Idea (VIL) said in a BSE filing.
Agenda
The agenda of the meeting pertained to the “issuance of securities up to an aggregate amount of Rs 20,000 crore”.
Background
In February this year, Vodafone Idea had announced its board’s approval to raise up to Rs 20,000 crore in equity from promoters and other investors by June. This move was aimed at strengthening finances for the much-delayed 5G rollout and improving 4G services.
The debt-laden firm, where the government holds just over 33% equity stake, plans to raise Rs 45,000 crore through a mix of equity and debt to compete with rivals Jio and Bharti Airtel.
Financial Challenges
Vodafone Idea has been facing significant financial challenges with a debt of Rs 2.1 lakh crore and reported quarterly losses. It has been losing subscribers consistently in a highly competitive market.
Data from Trai showed that Vodafone Idea lost 15.2 lakh wireless subscribers, bringing its mobile subscriber base to 22.15 crore in January. This contrasts sharply with the subscriber gains seen by Jio and Airtel.
