Share issue to govt will happen fairly soon: Vi mgmt tells shareholders
Equity infusion to the government has not happened yet due to “procedural delays” and will happen fairly soon, Vodafone Idea (Vi) management told its shareholders on Saturday.
In January, the telecom company decided to issue shares to the government as it opted to convert interest on deferred liabilities into equity. Non-executive chairman Himanshu Kapania said such a conversion is first of its kind and is yet to happen due to a procedural delay.
“It is an event which will happen in the due course,” Kapania said at the company’s extraordinary general meeting. The meeting was called to approve capital infusion in the company.
CEO & MD Ravinder Takkar said the company has provided all the details to the government and expects share issuance to happen fairly soon.
Post issuance of the shares, the government is expected to hold around 35.8 per cent stake in the company, as per company estimates.
Earlier this month, promoters Aditya Birla group and Vodafone Plc UK decided to infuse Rs 4,500 crore into the company. This sum will be largely used to pay pending dues of Indus Towers and for general corporate purposes. Additionally, the company is seeking to raise Rs 10,000 crore from investors via equity or debt for expanding 4G coverage and network expansion.
As per initial plans, Vi had hoped to conclude fund raising from external investors by March end. However, the investments are yet to materialise. Conversion of interest on deferred adjusted gross revenue dues is critical for the company’s efforts to raise funds from investors.
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