Debt-ridden Vodafone Idea to raise Rs 1,980 crore through share issue

Vodafone Idea will raise up to Rs 1,980 crore ($233.8 million) through the issue of preferential shares, the Indian telecom company said on Monday. 

Vodafone Idea said it will issue shares to Vodafone Group entities Omega Telecom Holdings and Usha Martin Telematics worth up to Rs 1,280 crore and Rs 700 crore, respectively. 

The fundraise will likely help the debt-saddled firm pay some of its dues to network infrastructure provider Indus Towers , to which it owes about Rs 5000-6000 crore, according to Ambit Capital's Vivekanand Subbaraman. 

Vodafone Idea did not specify details about its plans to use the funds. 

 

As of September-end, its total debt pile stood at Rs 2.16 trillion, including deferred spectrum payment obligations it owes to the government. 

The company, formed by a merger between the Indian arm of the UK's Vodafone Group and Aditya Birla Group's Idea Cellular in 2018, has so far raised about Rs 24,000 crore in the year. 

Parent Vodafone Group announced last week that it was selling its remaining 3 per cent stake in Indus Towers. It will use proceeds to repay its borrowings and infuse fresh capital into Vodafone Idea to help it pay its past dues to Indus, it said.   

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