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Vodafone Idea raises Rs 15 bn through debt, its first since incorporation

The NCDs have the maturity period of 5 years and have been offered at an interest rate of 10.9 per cent per annum

Press Trust of India  |  New Delhi 

The immediate priority of the merged entity will be to consolidate its position across the range of service offerings

major Limited Monday raised Rs 15 billion fund through non-convertible debentures on private placement basis -- first debt after its incorporation.

"The Securities Allotment Committee have at their meeting held today i.e. on September 3, 2018, allotted 15,000 unsecured redeemable non-convertible debentures aggregating to Rs 15 billion on private placement basis," said in a regulatory filing.

The NCDs have the maturity period of 5 years and have been offered at an interest rate of 10.9 per cent per annum.

Idea Cellular Ltd and Vodafone Plc on last Friday announced the completion of the $23.2 billion merger of their India operations to create the country's largest operator to take on competition from Reliance Jio.

ALSO READ: Vodafone Idea looks to consolidate its position, faces new challenges

The merged entity, called Ltd, will has a subscriber base of over 408 million and a market share of over 35 per cent, overtaking Bharti Airtel to take numero uno spot. The merger puts Vodafone India and Idea in a strong position to cut costs and thus compete effectively with Reliance Jio. Savings from the deal are estimated at Rs 140 billion.

First Published: Tue, September 04 2018. 01:24 IST
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