Vodafone Idea shareholders approve Rs 436 cr share allocation to Vodafone, Telecom News, ET Telecom

Debt rides telecom operator Vodafone idea‘s shareholders have approved the allotment of shares worth Rs 436.21 crore to its promoter entity, the Vodafone Group. According to the voting results submitted to the exchanges Friday evening, 99.94 percent of Vodafone idea (SHALL) shareholders approved equity allocation to Vodafone Group firm Euro Pacific Securities.

Vodafone Group currently holds a 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 of Rs 20,000-25,000 crore from outside sources for the past two years but has been unable 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 about Rs 16,100 crore interest into a stake of about 33 percent in the company to provide liquidity for investment in the company.

Still, analysts have said high leverage and weak balance sheets have eroded the company’s ability to invest in the network.

On March 31, 2022, the group’s total debt (including accrued but unpaid interest) was Rs 1,97,878.2 crore. The company has about Rs 8,160 crore in payments over the next 12 months, according to analysts.