Indian telco Vodafone Idea to raise $234 mln via share issue (updated)

Indus Towers

09/12/2024 11:55

(Adds details on fundraise in paragraphs 2-4, background on
company's debt from paragraph 5 onwards)
       Dec 9 (Reuters) - Vodafone Idea  VODA.NS  will raise up
to 19.80 billion rupees ($233.8 million) through the issue of
preferential shares, the Indian telecom company said on Monday.
    Vodafone Idea said it will issue shares to Vodafone Group
entities Omega Telecom Holdings and Usha Martin Telematics worth
up to 12.8 billion rupees and 7 billion rupees, respectively.
    The fundraise will likely help the debt-saddled firm pay
some of its dues to network infrastructure provider Indus Towers
 INUS.NS , to which it owes about 50-60 billion rupees,
according to Ambit Capital's Vivekanand Subbaraman.
    Vodafone Idea did not specify details about its plans to use
the funds.
    As of September-end, its total debt pile stood at 2.16
trillion rupees, including deferred spectrum payment obligations
it owes to the government.
    The company, formed by a merger between the Indian arm of
the UK's Vodafone Group  VOD.L  and Aditya Birla Group's Idea
Cellular in 2018, has so far raised about 240 billion rupees in
the year.
    Parent Vodafone Group announced last week that it was
selling its remaining 3% stake in Indus Towers. It will use
proceeds to repay its borrowings and infuse fresh capital into
Vodafone Idea to help it pay its past dues to Indus, it said. 
    

($1 = 84.7000 Indian rupees)
    

 (Reporting by Aleef Jahan and Nishit Navin in Bengaluru;
Editing by Janane Venkatraman)
 ((aleefjahan.cs@thomsonreuters.com))