VIL shareholders approve ₹436 crore equity allocation to Vodafone

Vodafone Group at present holds 58.46% stake in the company

July 16, 2022 12:02 pm | Updated 01:51 pm IST - New Delhi:

The Vodafone logo is seen at the Mobile World Congress in Barcelona, Spain, February 28, 2018.

The Vodafone logo is seen at the Mobile World Congress in Barcelona, Spain, February 28, 2018. | Photo Credit: Reuters

Debt-ridden telecom operator Vodafone Idea's shareholders have approved an equity allocation worth ₹436.21 crore to its promoter entity, the Vodafone Group.

As per voting results submitted to the stock exchanges on Friday evening, 99.94% of Vodafone Idea (VIL) shareholders approved allocation of the equity to Vodafone Group firm Euro Pacific Securities.

Vodafone Group at present holds 58.46% stake in the company and Aditya Birla Group 16.53%.

The company had raised ₹3,375 crore from Vodafone Group and ₹1,125 crore from Aditya Birla Group in March.

VIL has been trying to raise funds in the range of ₹20,000-25,000 crore from external sources for the last two years but has failed to attract any investors. The government announced a reform package in September last year which has largely benefited Vodafone Idea.

The government has allowed VIL to convert around ₹16,100 crore interest dues into about 33% 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 of March 31, 2022, the total debt (including interest accrued but not due) of the group was ₹1,97,878.2 crore. The company has around ₹8,160 crore of payments due over the next 12 months, as per analysts.

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.