(Pooja Dubey, Intern Journalist) Telecom service provider Vodafone Idea Ltd said on Friday that its board of directors has approved a plan to raise funds up to Rs 25,000 crore (about $ 3.41 billion at the current exchange rate).
In its fundraising plan, the company has also mentioned issuing unsecured and/or secured non-convertible debentures up to Rs 15,000 crore. These debentures can be issued at one time or more than once by public offering or private placement or by other means. The fundraising plan will be approved by the shareholders. Other regulatory approvals will also be obtained.
Supreme Court had ordered all telecom companies to pay 10% of the dues related to adjusted gross revenue (AGR) this year. According to the court order, these companies will pay the remaining amount of AGR in 10 installments. Companies will have to pay these 10 installments from the next business year (2021-22).
This company, which is facing a shortage of money, will get a big help from this fund. The company is incurring huge losses. The company’s customers are decreasing. Its average revenue to the user is also low. The company owes about Rs 50,000 crore to AGR.
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