You are here: Home » News-CM » Companies » News
Business Standard

Board of Vodafone Idea approves modification of utilization of rights issue proceeds of Rs 2826.1 cr

Capital Market 

On 10 January 2020

The Board of Vodafone Idea, by a resolution dated 10 January 2020, has approved the modification to the objects of the Rights Issue.

Pursuant to its letter of offer dated 22 March 2019 (Letter of Offer), the Company had allotted 19,999,830,911 equity shares (face value Rs 10 with a premium of Rs 2.50) by way of a rights issue (Rights Issue) on 4 May 2019 for an aggregate amount of Rs 24999.79 crore (Issue Proceeds).

Under the Letter of Offer, the Company had proposed to utilize an amount of Rs. 18674.79 crore towards Payment of certain deferred payment liabilities to the Department of Telecommunications (DoT) and repayment of certain borrowings (including interest thereon). The aforesaid amount included an amount of Rs. 2826.1 crore to be utilised as part payment towards a deferred payment liability of Rs. 6277.1 crore to DoT which was payable by 9 April 2020.

The DoT has now granted a two year moratorium on deferred payment liabilities towards spectrum payments to telecom companies and hence the amount of Rs. 2826.1 crore earlier earmarked for payment of deferred payment liabilities identified in the Letter of Offer need not be utilized for that purpose.

The Company has, therefore, decided to modify the terms of the Letter of Offer so as to use Rs. 2826.1 crore towards following objects, subject to the individual caps set out against each object:

Particulars of Modification-
1. Payment towards the License Fees and Spectrum Usage Charges payable to DoT, including any interest or penalty thereto - Rs 2826.1 crore
2. Repayment of Loans and Redemption of Non-Convertible Debentures (including interest) a) Redemption of Non-Convertible Debentures (including interest) and b) Repayment of Loans (including interest) - Rs 2826.1 crore.

In any event, the aggregate expenditure towards the modified objects (set out above) will not exceed Rs. 2826.1 crore.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 13 2020. 09:06 IST