Vodafone Idea stated on Friday it might elevate as much as Rs 25,000 crore ($3.41 billion) in contemporary capital because the telecom operator tries to repay the hefty dues it owes to the federal government. The loss-making provider has been ordered by the nation’s prime courtroom to pay roughly Rs 50,000 crore ($6.81 billion) in dues to the federal government over a 10-year interval and it has to date paid Rs 7,854 crore. Vodafone stated it might elevate as much as Rs 15,000 crore by means of debentures and an equal quantity by issuing shares and warrants, however collectively won’t exceed Rs 25,000 crore.
The plan to lift contemporary capital additionally comes because the nation’s third largest telecom operator grapples with an erosion in subscriber base as a result of a value battle triggered by Reliance Industries’ telecoms enterprise, Jio Infocomm.
Vodafone misplaced 4.7 million subscribers in May alone, information from the nation’s telecom regulator confirmed, whereas its gross debt stood at Rs 1.19 lakh crore as of June-end.
The three way partnership between Britain’s Vodafone Plc and Idea Cellular had final month reported its eight straight quarterly loss and unveiled a plan to cut back prices by Rs 4,000 crore a yr over 18 months.