Vodafone Idea share price jumps 10% as board to mull fund raising
Vodafone Idea share price spiked 10 percent at open on September 2 after the company said its board will meet on September 4 to discuss fundraising proposals, as it struggles to keep its business alive in India.
The board will assess capital raising measures such as public issue, preferential allotment, private placement, including a qualified institutions placement, by way of issuing equity shares of other instruments.
In a statement to the BSE, Vodafone Idea said the board will "consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and/or a combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any instruments or securities".
The company has been under immense pressure related to the AGR dues. It was trading at Rs 9.75, up to Rs 0.86, or 9.67 percent. It has touched an intraday high of Rs 9.77 and an intraday low of Rs 9.25.
On September 1, the Supreme Court allowed telecom players a 10-year timeline to pay adjusted gross revenue (AGR) dues. The apex court also asked the companies to make an upfront payment of 10 percent of the outstanding amount.
According to an assessment by the Department of Telecommunications, (DoT), Vodafone Idea owed Rs 58,254 crore. The telecom major owes balance AGR-related dues of around Rs 50,399 crore, Solicitor General Tushar Mehta said on July 20.
The Telecom Regulatory Authority of India (TRAI) has granted Vodafone Idea additional time till September 4 to respond to its show-cause notice on priority plan RedX, a source told PTI.