Shareholders of debt-ridden telecom operator Vodafone Idea have approved equity allocation of ₹436.21 crore to its promoter entity. Vodafone Group,
According to the voting results presented to the stock exchanges on Friday evening, 99.94% Vodafone Idea (VIL) shareholders approved the allotment of equity to Euro Pacific Securities, a Vodafone Group firm.
Vodafone Group currently holds 58.46 per cent stake in the company and Aditya Birla Group holds 16.53 per cent.
The company had raised ₹3,375 crore from Vodafone Group and ₹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 for the past two years, but has failed to attract any investors. The government had announced a reform package in September last year, which has largely benefited Vodafone Idea.
The government has allowed VIL to convert around ₹16,100 crore interest arrears in the company into about 33% stake, to provide liquidity for investment in the business.
Still, analysts have said higher leverage and a weak balance sheet have impacted the company’s ability to invest in the network.
As on March 31, 2022, the group’s total debt (including interest but not outstanding) stood at ₹1,97,878.2 crore. According to analysts, the company has to pay around ₹8,160 crore in the next 12 months.