New Delhi: Debt-ridden telecom operator Vodafone Idea‘s shareholders have approved equity allocation worth Rs 436.21 crore to its promoter entity, the Vodafone Group. As per voting results submitted to the stock exchanges on Friday evening, 99.94 percent of Vodafone Idea (VIL) shareholders approved the allocation of the equity to Vodafone Group firm Euro Pacific Securities.
Vodafone Group at present holds 58.46 percent stake in the company and Aditya Birla Group 16.53 percent.
The company had raised Rs 3,375 crore from Vodafone Group and Rs 1,125 crore from Aditya Birla Group in March.
VIL has been trying to raise funds in the range of Rs 20,000-25,000 crore from external sources since the last two years but has failed to attract any investor.
The government announced a reform package in September last year which has largely benefited Vodafone Idea.
The government has allowed VIL to convert around Rs 16,100 crore interest dues into about 33 percent stake in the company to provide liquidity for investment in the business.
Still, analysts have said high leverage and weak balance sheet have impaired the company’s ability to invest in the network.
As on March 31, 2022, the total debt (including interest accrued but not due) of the group was Rs 1,97,878.2 crore. The company has around Rs 8,160 crore of payments due over the next 12 month, as per analysts.
(With PTI inputs)
(PSU Watch– India’s Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)