Debt-ridden telecom operator Vodafone Idea’s shareholders have approved equity allocation worth Rs 436.21 crore to its promoter entity, the Vodafone Group. As per voting results submitted to the stock exchanges on Friday evening, 99.94 per cent of (VIL) shareholders approved allocation of the equity to Vodafone Group firm Euro Pacific Securities.
Vodafone Group at present holds 58.46 per cent stake in the company and Aditya Birla Group 16.53 per cent.
The company had raised Rs 3,375 crore from Vodafone Group and Rs 1,125 crore from Aditya Birla Group in March.
VIL has been trying to raise funds in the range of Rs 20,000-25,000 crore from external sources since the last two years but has failed to attract any investor.
The government announced a reform package in September last year which has largely benefited Vodafone Idea.
The government has allowed VIL to convert around Rs 16,100 crore interest dues into about 33 per cent stake in the company to provide liquidity for investment in the business.
Still, analysts have said high leverage and weak balance sheet have impaired the company’s ability to invest in the network.
As on March 31, 2022, the total debt (including interest accrued but not due) of the group was Rs 1,97,878.2 crore. The company has around Rs 8,160 crore of payments due over the next 12 month, as per analysts.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
