Post the Supreme Court’s AGR verdict, Vodafone Idea informed the exchange that it will meet on September 4 to discuss fundraising proposals. Due to this announcement, the script of Vodafone Idea Ltd. traded 9.9 per cent up in Wednesday's trade at 9.25 am. It is still trading in green.
At present, the company is struggling with its business in India, but there are hopes that Vodafone's parent company would like to keep this business moving.
In a statement to the exchange, 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 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 Supreme Court verdict granted the telecom players a 10-year period to pay the Adjusted Gross Revenue (AGR)-related dues to the Department of Telecommunications (DoT). However, the court has asked the telcos to pay 10 per cent of the AGR-related dues by March 31, 2021 and 10 per cent every year by February 7 for the next nine years. While this ruling worked in favour of Bharti Airtel that has already made a provision, this had a negative impact on Vodafone Idea as they have to pay 10 per cent upfront.
