Shares of Vodafone Idea climbed as much as 14.69 per cent in the early trade on Wednesday after the stressed telecom operator informed that its Board of Directors will meet on September 4 (Friday) to consider fund raising in one or more tranches through public issue, preferential allotment, private placement, including a qualified institutions placement (QIP) and/or through other instruments.
The Vodafone Idea stock rose 14.69 per cent to hit a high of Rs 10.15 per share on the National Stock Exchange (NSE), while on the BSE, it climbed 13.61 per cent to Rs 10.10 apiece. However, the stock trimmed some of its gains by late morning deals.
At 11:32 am, Vodafone Idea was trading at Rs 9.52, up 7.09 per cent on the BSE, and on NSE it was at Rs 9.50, up 7.34 per cent, realtime data on the stock exchanges showed. Over 8.27 crore shares of Vodafone idea were traded on the BSE and over 33.94 crore shares exchanged hands on NSE, the data from the respective stock exchange showed.
In a BSE exchange filing last night, Vodafone Idea said, “we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on September 4, 2020, inter-alia, to 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 including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed.”
On Tuesday, the Supreme Court allowed the telecom companies to stagger their payments of the adjusted gross revenue (AGR) dues over the next 10 years.
As per the SC ruling, the incumbent mobile operators will have to pay 10 per cent of their AGR-related dues by March 31, 2021. The court also said that the Managing Directors (MDs) or Chief Executive Officers (CEOs) of these telecom firms would require to submit an undertaking to pay AGR dues as per the Supreme Court’s order.
The three-judge bench cautioned the telecom companies saying that failure to pay the installments of the AGR-related dues would invite penalty, interest and contempt of court.
Vodafone Idea, which faces a payment of more than Rs 58,000 crore, has only paid Rs 7,850 crore AGR dues till date. The telco will have to pay nearly Rs 1,128.4 crore as AGR dues every quarter for the next 10 years.
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