Vodafone Idea’s board has decided to meet on Friday to consider fundraising options after the Supreme Court directed all telecom operators to pay 10% of the total adjusted gross revenue (AGR)-related dues in 2020-21 and the rest in equal installments over 10 years, starting FY22.
Mint had reported that the debt-ridden telecom firm was expected to resume fundraising talks that had stalled because of the AGR case. It may approach e-commerce major Amazon.com Inc. and Verizon Communications of the US.
According to industry experts, the company needs fresh equity, higher tariff and concession in various government levies to continue operations besides paying the annual installment of AGR dues, which include spectrum usage charges, licence fee, interest, penalty and interest on the penalty. Vodafone Idea owes the government ₹58,254 crore.
Of this, it has already paid ₹7,854 crore to the department of telecom.
The board will “consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement, or through any other permissible mode and/or combination thereof…by way of issue of equity shares or by way of issue of any instruments,” Vodafone Idea said in an exchange filing.
In a post-earnings conference call for analysts, the management had said its fundraising plans would depend on the apex court’s verdict and the board will decide on the quantum once the order is passed.
In a separate filing on Thursday night, the telecom operator also informed the stock exchanges that as part of the firm’s corporate strategy, it is constantly evaluating various opportunities for enhancing stakeholders’ value.
“As and when such proposals are considered by the board of directors of the company warranting disclosures, the company shall comply with the disclosure obligations,” the company said. At present, there is no proposal as reported by the media that is being considered by the board, it said.