Vodafone Idea Update: Vodafone Idea, which is facing heavy debt burden and fund problems, has called a meeting of the company’s board on October 21, 2022, in which it is believed that the issue of raising money by issuing convertible debentures. will be discussed. So that the company can launch 5G service with its network expansion.
Vodafone Idea (Vi) has informed stock exchanges in a regulatory filing that a meeting of the Board of Directors will be held on Friday, October 21, 2022, to discuss the issue of convertible debentures converting to shares to a vendor on a private placement basis. The company said that regulatory approval would be taken from the shareholders. After this news came to the fore, the stock of Vodafone Idea saw a rise.
In fact, the company is continuously losing its customers to its Reliance Jio and Bharti Airtel. Even in August 2022, the company’s 19 lakh customers have decreased. Reliance Jio and Airtel have launched their 5G service but Vodafone Idea has not yet been able to clarify when it is going to start 5G service. Vodafone Idea is facing difficulties in the gear supply of 5G network and in finalizing contracts with tower companies. Vodafone Idea has been trying to raise funds for the last two years but the company has not been successful in this.
Two years ago, the government announced a bailout package to get the telecom companies out of the crisis, which got Vodafone Idea a big advantage. The government gave the company a moratorium in payment of the outstanding amount on account of spectrum. Despite this, the company has not been able to come out of the crisis. Recently, Vodafone Idea was asked by the tower company to pay the dues immediately.
Vodafone Idea had an outstanding debt of Rs 1.98 lakh crore at the end of the first quarter of the current financial year. The company owes Rs 1.16 lakh crore towards spectrum payment. The company owes Rs 15,200 crore to financial institutions. For two years, Vodafone Idea has been trying to raise Rs 20,000 crore through debt and equity. But he is not getting success in this endeavor.
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