- Friday, April 26, 2024
By: Shubham Ghosh
INDIAN telecom operator Vodafone Idea will seek fresh broad approval to raise funds once the Indian government issues detailed guidelines on telecom reform measures and its promoters will get a chance to take part in the fundraising round, its managing director and chief executive officer Ravinder Takkar on Wednesday (22) said.
Speaking to Press Trust of India, he said the company is gearing up to invest in the business and compete in the market. He said when the actual guidelines are issued by the government, the company will update its business plans accordingly.
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“We expect those to come out in the next few days. On that basis, how much funding is needed, what amounts are needed, what type of funding is needed will emerge,” he said.
“Obviously we will have to then take it to our board to get the approvals. I see all those steps happening in the coming days and weeks starting with the clarity from the government on the details and guidelines of the package,” Takkar added. Vi (Vodafone Idea) board had earlier approved a fundraise of up to Rs 25,000 crore but it has been unable to finalise any investor as of now.
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Its promoters — Aditya Birla Group and Vodafone — had earlier declined to invest further in the company. They have not explained their stance post announcement of telecom reforms by the government.
When asked if the company had been approached by investors, Takkar said they will have a chance to invest in the fundraise after the board approves it but the government reforms have answered all questions that investors had raised.
“We have been engaged for several months now… engaged in the fund-raising process. As we have gone through this process, few things have been very clear to us. There is a lot of interest from these investors in investing in India. There is interest in our sector,” he said.
The Narendra Modi cabinet last week approved a big-bang relief package for the stressed telecom sector that includes a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid and 100 per cent foreign investment through the automatic route.
The measures were aimed at providing relief to companies such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues.
“We will survive and we will always be present. There have always been sceptics and there have been people who have been saying this is not possible. There is no doubt we are going to be in the market, there is no doubt that we will be competing. There is no doubt that this is going to be a three player market with Vodafone Idea continuing to survive and compete in the market.” Takkar said.
