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Vodafone Idea board approves fund raising; expert evaluates road ahead for telecom sector

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Vodafone Idea board approves fund raising; expert evaluates road ahead for telecom sector

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Vodafone Idea has been trying to raise above Rs 25,000 crore, but they were stuck because the business was not going anywhere, said Dayanand Mittal, research analyst- oil and gas, telecom at JM Financial Institutional Securities.

Vodafone Idea has been trying to raise above Rs 25,000 crore, but they were stuck because the business was not going anywhere, said Dayanand Mittal, research analyst- oil and gas, telecom at JM Financial Institutional Securities.

Debt-ridden telecom operator Vodafone Idea on Thursday, March 3, said its board has approved raising funds up to Rs 14,500 crore. The board has approved the issuance of up to 338.3 crore equity shares at the issue price of Rs 13.30 per share to promoters on a preferential basis for a consideration of Rs 4,500 crore. An amount of Rs 10,000 crore would be raised by way of sale of equity or through debt instruments such as ADR, GDR and FCCBs.
In an interview to CNBC-TV18, Mittal said, “Vodafone Idea has been trying, since last year, to raise above Rs 25,000 crore, but they were stuck because the business was not going anywhere.”
“However, there is a still a lot of uncertainties ahead and Rs 10,000 crore in my view would still be a relatively smaller number given the quantum of capex required, not only to increase 4G network but if they want to participate in 5G as well,” he said.
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