Debt-ridden telecom operator Vodafone Idea’s shareholders have approved 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% 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 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 about ₹16,100 crore interest dues into about 33% stake in the company to provide liquidity for investment in the business.
As on March 31, 2022, the total debt (including interest accrued but not due) of the group was ₹1,97,878.2 crore. The company has about ₹8,160 crore of payments due over the next 12 month, as per analysts.
| Photo Credit: PUNIT PARANJPE
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 ₹1,97,878.2 crore. The company has about ₹8,160 crore of payments due over the next 12 month, as per analysts.
