Cash-strapped telco Vodafone Idea to raise Rs 4,500 crore by issuing shares to promoters
Cash-strapped Vodafone Idea (VIL) on Friday said it is in active talks with potential investors for fund raising, and asserted that 'floor price' remains the "best and most preferred" fix for industry's woes arising from tariff-related issues.
VIL confirmed that it has approached government to extend moratorium on spectrum instalments. The company highlighted that sector's biggest pain point comes from pricing issues, and conceded that tariff hike is "absolutely" essential to revive the sector, which is under stress.
Speaking at analyst call post Q4 earnings announcement, Ravinder Takkar, CEO of Vodafone Idea said, "On fund raising, we are currently in active discussion with potential investors."
In a recent SOS to the Telecom Department, the troubled operator had said it will be "unable to pay the instalment of Rs 8,292 crore due on April 9, 2022" due to "cash being used for payment of AGR (Adjusted Gross Revenue) dues and the inability of the operations to generate the required cash in a predatory pricing situation".
VIL had reported narrowing of consolidated loss to about Rs 7,023 crore for the quarter ended March 2021, mainly on the strength of cost optimisation. Vodafone Idea had posted a loss of Rs 11,643.5 crore in the same period a year ago.
