Ever since the Supreme Court has asked operators to pay their AGR dues, Vodafone-Idea is looking for new ways to raise funds. In fact, the merged entity has announced that it has approved the fundraising procedure. The company is planning to raise Rs. 25,000 crore via security convertibles.
Notably, the company has to pay Rs. 50,400 crore to the Department of Telecommunications as AGR dues. “The Board of Directors of the Company approved the raising of funds through issue of equity shares or securities convertible into equity shares, Global Depository Receipts, American Depository Receipts, foreign currency convertible bonds, convertible debentures, and warrants,” the company informed on the BSE filing.
Vodafone-Idea Plans To Raise Tariffs
Meanwhile, analysts close to the development, said that the company is also planning to raise tariffs to increase its average revenue per user between Rs. 200 to Rs. 240 ( as against Rs. 118) in the next 18 months, while Morgan Stanley believes that the company is looking for Rs. 199.
On the other hand, industry sources expect that the company has already lost 580 basis points in the revenue market share, so there are chances that it might not increase tariffs, the company has posted a loss of Rs. 25,460 crore in the first quarter of this financial year.
Vodafone-Idea Clears Its Stand On Deal With Amazon And Verizon
Meanwhile, the operator has said that they have not received any proposal from the Amazon and Verizon. The statement comes after a news report claims that both companies are planning to buy a stake in the operator business for $4 billion. “As part of the corporate strategy, the company constantly evaluates various opportunities for enhancing the stakeholders’ value…Currently, there is no proposal as reported by the media that is being considered at the board,” Vodafone-Idea issued a clarification in the regulatory filing.