India Breaking News Line
Buisness

To raise Rs. 45K crore via loan and equity

Share

<p>The third-biggest telecom service provider in the nation, Vodafone Idea Limited (VIL), said on Tuesday that it intends to raise around Rs 45,000 crore via a mix of debt and equity.</p>
<p><img decoding=”async” class=”alignnone wp-image-453880″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-to-raise-rs-45k-crore-via-loan-and-equity-newindianexpress-2024-02-e3a562ef-34ee-4-750×500.jpg” alt=”theindiaprint.com to raise rs 45k crore via loan and equity newindianexpress 2024 02 e3a562ef 34ee 4″ width=”1194″ height=”797″ title=”To raise Rs. 45K crore via loan and equity 9″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-to-raise-rs-45k-crore-via-loan-and-equity-newindianexpress-2024-02-e3a562ef-34ee-4-750×500.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-to-raise-rs-45k-crore-via-loan-and-equity-newindianexpress-2024-02-e3a562ef-34ee-4-1024×683.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-to-raise-rs-45k-crore-via-loan-and-equity-newindianexpress-2024-02-e3a562ef-34ee-4-768×512.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-to-raise-rs-45k-crore-via-loan-and-equity-newindianexpress-2024-02-e3a562ef-34ee-4-150×100.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-to-raise-rs-45k-crore-via-loan-and-equity-newindianexpress-2024-02-e3a562ef-34ee-4.jpg 1200w” sizes=”(max-width: 1194px) 100vw, 1194px” /></p>
<p>Through a mix of shares and/or equity-linked instruments, the business will raise Rs 20,000 crore. The money will be used to compete, build up the nation’s 4G and 5G networks, and increase network coverage.</p>
<p>“The company intends to raise approximately Rs 45,000 crore through a combination of equity and debt,” the company said in an exchange filing.</p>
<p>The business said in an exchange filing that it has also given the management permission to choose other middlemen, such as bankers and attorneys, to carry out the fundraising. The telecom anticipates completing the equity fundraising in the next quarter after shareholder approval, and it will call a meeting of its shareholders on April 2, 2024.</p>
<p>The telecom company said that, as previously promised, the promoter, Aditya Birla Group, would take part in the planned stock raising as well. Furthermore, the business is still in contact with its lenders in order to finalize the loan financing, which will come after the equity raising.</p>
<p>For almost three years, Vodafone Idea, a joint venture between Aditya Birla Group of India and Vodafone Plc of the UK, has been experiencing financial difficulties in raising capital. The company’s inability to spread out its 5G services throughout the nation and stop losing customers to rivals Reliance Jio and Bharti Airtel is a result of its funding shortage. By the end of December, its gross subscriber base had dropped to 223.05 million. Vi’s net debt increased to Rs 2.14 lakh crore as per the results of the December quarter, while cash equivalents were at Rs 318.9 crore.</p>
<p>But between Q3FY23 and Q3 FY24, Vi’s debt to banks and other lenders dropped by Rs 7,140 crore to Rs 6,050 crore. The business said that it now owed less than Rs 4,500 crore in bank debt.</p>
<p>“The cash will allow the corporation to invest in major 5G network deployment, capacity growth, and 4G coverage expansion. According to the firm, it will also enhance its competitive standing and provide an even better client experience.</p>
<p>Prashanth Tapse, Senior Vice President and Research Analyst at Mehta Equities Ltd., said, “We believe these investments will enable the company to improve its competitive positioning in telecom sector, offer an even better customer experience, and gain market share.”</p>
<p>Extension of 4G/5G</p>
<p>The money will be used to compete, build up the nation’s 4G and 5G networks, and increase network coverage. With the remaining funds coming from debt, the business plans to raise Rs 20,000 crore via a mix of stock and/or equity-linked securities. Aditya Birla Group, the promoter, will take part in the planned stock raising as well.</p>


Share

Related posts

Gianni Versace’s label earns Rs 11,000 crore annually after growing from a small boutique to an iconic luxury brand

cradmin

Learn About IRDAI’s Bima Bharosa Portal to File a Complaint Against an Insurance Company

cradmin

Bitcoin prices today, July 25, among the top cryptocurrencies

cradmin