Vodafone Idea Board To Consider Fundraise On May 30 As AGR Trouble Mounts
The board will mull proposals for raising funds in one or more tranches, either by way of a rights issue or further public offer or private placement.
Debt-ridden Vodafone Idea Ltd.'s board will consider fundraising options along with approval of its financial results on May 30, the company said on Tuesday.
The board will mull proposals for raising funds in one or more tranches, either by way of a rights issue or further public offer or private placement (including preferential allotment or qualified institutions placement) or through any other permissible mode, according to a stock exchange filing.
Fundraise through bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or nonconvertible debentures including non-convertible debentures along with warrants, which may or may not be listed, can also be an option.
Vodafone Idea board will also meet and consider approving its financial performance for the March quarter as well as fiscal 2025, the filing said.
Last week, the Supreme Court dismissed the telecom operators' petition on adjusted gross revenue dues waiver, calling them 'misconceived.'
The court acknowledged that the companies can explore other remedies. However, it clarified that they can't pursue the same through the Supreme Court in this manner.
"Don’t make us a party," said the Supreme Court, essentially refusing to mediate or interfere in what it considers a matter for the executive or government to decide.
Vi counsel pointed out that the company has already paid Rs 50,000 crore and that the government now owns nearly 50% of the company, to which the court responded that if the government wishes to help, it’s free to do so, but the judiciary won’t compel it.
Long-Standing AGR Woes
The Department of Telecommunications, in a letter dated April 29, said the request for further concessions on AGR liabilities “cannot be considered” due to the apex court’s 2020 ruling in the case. The ministry noted that Vodafone Idea had already sought and received partial support when the government converted spectrum-related dues worth Rs 36,950 crore into equity, increasing its stake in the company to 49%.
This marks the latest chapter in a long-running dispute over the definition and calculation of AGR, which began with a 2019 ruling. In 2020, the top court fixed a 10-year timeline for telcos to clear dues. The DoT had earlier urged the court to extend the repayment window to 20 years, but the court did not accept the proposal.
