Will Vodafone Idea have good days again? Important meeting tomorrow to raise funds of 500 crores

The company owes thousands of crores.

Image Credit source: File photo

The spectrum auction is going to take place in the month of July. Apart from this, Vodafone Idea needs 500 crores to repair its network. An important meeting is going to be held in this regard on Wednesday.

Vodafone Idea’s condition is bad. The company has a huge cash crunch, in such a situation it wants to collect a fund of 500 crores from its promoter Vodafone Plc. An important decision in this regard will be taken on Wednesday. Vodafone Idea ,Vodafone Idea) Joint Venture of British company Vodafone Plc and Indian company Aditya Birla Group. In the information sent to the stock market, it was said that an important meeting of the board is going to be held on Wednesday in which a decision will be taken in this regard. In this meeting, it will be considered to raise funds by issuing equity shares. Apart from this, there will also be an option of convertible warrant.

Earlier this year, in the months of February and March, Vodafone Group sold a total of 7.1 per cent stake in Indus Towers. 2.4 per cent stake was sold through block deal, while 4.7 per cent stake was sold to Bharti Airtel. With the help of this Vodafone Idea collected a fund of 3831 crores.

Preparing to repair the network

Debt-burdened Vodafone Idea is in dire need of cash to repair its network. Apart from this, spectrum is also going to be auctioned in the month of July. For this also the company needs money. The company also plans to collect additional funds of 10 thousand crores in lieu of equity from outside investors.

Liability of thousands of crores as AGR dues

Vodafone Idea is going through a tough crisis at the moment. The company owes thousands of crores as AGR. Under the relief package issued by the government, it has also opted to defer spectrum charges for four years. Apart from this, the interest part will be converted into equity. In such a situation, the government will have 33 percent stake in the company. UK company Vodafone Plc and Indian Aditya Birla Group hold 50 per cent stake in Vodafone Idea.

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Vodafone customers down again

The number of Vodafone customers is continuously declining. According to TRAI data, in the month of April, there was a jump of 16.8 lakh new customers of Reliance Jio, Vodafone Idea lost 15.7 lakh old customers and Airtel also registered a jump of 8.1 lakh in the number of customers. According to TRAI, now the number of Airtel customers has increased to 36.11 crores. Jio is at number one with 405 million subscribers, while with the decline, the total number of Vodafone users has come down to 259 million.