Vodafone Concept (Vi), the third-largest telecom operator in India, has been eyeing to boost funds for a number of years. On April 2, 2024, Vi took votes from its shareholders to go forward with Rs 20,000 crore fundraising by way of fairness. The telco’s CEO (Chief Government Officer) of Vi, Akshaya Moondra, mentioned that publish fundraising, the promoter shareholding in Vodafone Concept would come all the way down to 40% from the present 50%. The CEO reassured the shareholders that 40% fairness continues to be a big stake for the promoters to maintain management over the corporate.
Learn Extra – Vodafone Concept Rs 701 Postpaid Plan is One of many Greatest, Right here’s Why
Vodafone Concept has been Shedding Subscribers and that is the Purpose
Different non-public telcos available in the market, together with Bharti Airtel and Reliance Jio have been consuming up the market share of Vodafone Concept. Moondra attributed the explanation for the subscriber loss to an inferior 4G community protection. Thus, the fundraising will allow Vi to extend capex to broaden its 4G networks in India.
Bharti Airtel and Reliance Jio are already concentrating on rural cities with their 4G and 5G networks, which might additional trigger subscriber loss to Vi. The whole plans of Vi’s fundraising exercise additionally embody elevating cash by way of debt. The telco will not draw back from elevating additional debt by way of lenders and monetary establishments as a result of it has been paying off the financial institution dues on time.
Additionally Learn: Vodafone Concept Launches eSIM Providers for Pay as you go Clients in New Delhi
Many of the current debt for Vi on its books pertains to AGR (adjusted gross income) dues that had been added because the Supreme Courtroom sided with the Division of Telecommunications (DoT) on the matter of whether or not beforehand paid dues had been incomplete.
Vi additionally has to deal with vendor dues, that are signficant, and repay the dues it owes to Indus Towers. A lot just lately, Indus Towers determined to go forward with the coversion of OCDs (optionally convertible debentures) to fairness within the firm to cut back debt.