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Vodafone Idea plans to raise funds through the issuance of convertible bonds

By Express press service

NEW DELHI: Vodafone Idea (ViL), the third Indian telecommunications operator, plans to raise funds through the issuance of convertible bonds. The loss-making phone company, without disclosing any details on the fundraising amount, said it would present the proposal at the next board meeting on October 21, 2022.

The company is desperate for funds to invest in its 5G infrastructure and compete with cash-rich Reliance Jio and Bharti Airtel. The telecommunications company has tried to raise funds for the past two years, but has so far failed to attract any investors.

“We inform you that a meeting of the board of directors of the company is to be held on October 21, 2022, among other things, to examine and evaluate a proposal to issue bonds convertible into shares at a preferential rate. / private placement basis to a supplier,” Vodafone Idea said in its exchange filing.

A convertible debenture is a long-term debt under which the debentures can be converted into shares after a fixed period. Usually there is no collateral that backs up the debt. Meanwhile, rivals Reliance Jio and Bharti Airtel have already launched their 5G services in many cities; Vodafone Idea has not yet given its 5G timetable.

READ ALSO | Vodafone Idea in talks with Indus Towers for more flexible payment terms

Chairman of Aditya Birla Group, Kumar Mangalam Birla, during the launch of 5G services in the country, said Vodafone would soon start rolling out 5G.

“We will soon begin the 5G deployment journey. We will leverage our strong presence in rural India, our enterprise customers, our technology partners and the global experience of the Vodafone Group to gradually roll out our 5G network and services over the coming period.” Birla said.

Last quarter, Vodafone Idea reported total debt of Rs 1.98 lakh crore. The company owes Rs 7,000 crore on the Indus Tower, and it is pressuring the telephone company to pay its rights. There is also no clarity from the government when it will convert its rights to use the spectrum into shares.

READ ALSO | Government to acquire Vodafone Idea stake after share price stabilizes at Rs 10 or more

VIL had opted for the conversion of government contributions into shares, after which the government will own almost 33% of the company. Meanwhile, the telco continued to lose its subscribers, in August 2022 it lost 19.6 lakh subscribers to its rivals.

NEW DELHI: Vodafone Idea (ViL), the third Indian telecommunications operator, plans to raise funds through the issuance of convertible bonds. The loss-making telecommunications company, without disclosing any details on the amount of the fundraiser, said it would present this proposal at the next board meeting on October 21, 2022. The company is in desperate need of funds to invest in its 5G infrastructure and compete with its cash. -rich Reliance Jio and Bharti Airtel. The telecommunications company has tried to raise funds for the past two years, but has so far failed to attract any investors. “We inform you that a meeting of the board of directors of the company is to be held on October 21, 2022, among other things, to examine and evaluate a proposal to issue bonds convertible into shares at a preferential rate. / private placement basis to a supplier,” Vodafone Idea said in its exchange filing. A convertible debenture is a long-term debt under which the debentures can be converted into shares after a fixed period. Usually there is no collateral that backs up the debt. Meanwhile, rivals Reliance Jio and Bharti Airtel have already launched their 5G services in many cities; Vodafone Idea has not yet given its 5G timetable. READ ALSO | Vodafone Idea in talks with Indus Towers for more flexible payment terms, Aditya Birla Group Chairman Kumar Mangalam Birla at the launch of 5G services in the country said Vodafone will start 5G rollout soon. “We will soon begin the 5G deployment journey. We will leverage our strong presence in rural India, our enterprise customers, our technology partners and the global experience of the Vodafone Group to gradually roll out our 5G network and services over the coming period.” Birla said. Last quarter, Vodafone Idea reported total debt of Rs 1.98 lakh crore. The company owes Rs 7,000 crore on the Indus Tower, and it is pressuring the telephone company to pay its rights. There is also no clarity from the government when it will convert its rights to use the spectrum into shares. READ ALSO | Government acquires Vodafone Idea stake after share price stabilizes at Rs 10 or more VIL had opted to convert government dues into shares, after which government will own almost 33% of the company. Meanwhile, the telco continued to lose its subscribers, in August 2022 it lost 19.6 lakh subscribers to its rivals.