Vodafone Idea board to meet on Sept 4 to consider fund-raising for AGR dues

As the Supreme Court allowed telecom operators 10 years for staggered payment of adjusted gross revenue (AGR)-related dues, Vodafone Idea said its board of directors will meet on September 4 to consider proposals for fund-raising.

The company plans to raise capital in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement, it said in a statement.

Vodafone Idea needs fresh equity, higher tariff and concession in various government levies to continue operations besides paying the annual instalment of the AGR dues that include spectrum usage charges, licence fee, interest, penalty and interest on the penalty.

Reports say the company owes the government Rs 58,254 crore. It will need to more than double its average revenue per user (ARPU) to meet its AGR repayment obligations.

Vodafone Idea had reported a net loss of Rs 25,460 crore in the April to June quarter. Its ARPU fell to Rs 114 from Rs 121 in the fourth quarter of the fiscal year 2020.

A day earlier, the company said it will sell its 11.15 per cent stake in Indus Towers for a cash consideration of Rs 4,040 crore.