INSUBCONTINENT EXCLUSIVE:
The shareholders also approved raising Rs 15,000 crore via non-convertible securities which may be used for paring debt of the entity
emanating from merger of Idea with Vodafone India
company said in a statement to the Bombay Stock Exchange Tuesday after the extraordinary general meeting held in Ahemdabad concluded
share and 37% revenue market share.
The new entity however will have a debt overhang of Rs 1,14,000 crore which it has been steadily trying
to pare by raising money in the past few months
The new funding of Rs 15,000 crore would also go towards that cause, as the merged entity looks to strengthen its balance sheet to better
take on rivals Reliance Jio and Bharti Airtel.
Idea has already raised Rs 6,750 crore from promoters this year and through a private
placement of shares, while Vodafone is infusing Rs 7,390 crore
Besides, the two have sold their captive towers to American Tower Corp
for Rs 7,850 crore, which will translate to more funds for the operators
Analysts estimate that Sharma and his team will have to hit the ground running as both telcos have trailed Jio and current market leader
Bharti Airtel in terms of rolling out 4G and Voice over LTE services, face an uphill battle to retain and add subscribers while regaining
While the key managerial roles have been announced, those in the next rung are getting decided upon.
