In the face of the ongoing financial crisis, Today Vodafone-Idea will probably announce its strategic strategy. According to reports it is set to rebrand itself. This development is based on the telecommunications company’s decision by means of share sales and new investors’ debt to increase to Rs 25,000 crore.
Vodafone Idea is the property of the Aditya Birla Group (ABG) and the Vodafone plc.
It is claimed that rebranding would possibly entail a merged brand identity and advertisement, as officials familiar with the subject said that telcos have so far marketed the two brands separately. The company may announce new packages for its subscribers across the country following the relaunch.
By means of equity share sales of up to Rs 15.000 crore and by way of a public offer or private placement of non-convertible debentures the board of directors of the company decided to raise the funds. In a statement on the stock exchanges, the company says that the sum will not exceed Rs 25,000 crore.
The relaunch comes even as the parent Vodafone Group does not intend to put any equity into Vodafone Idea.
The Economic Times reports that it plans to increase its credit in order to provide investors worldwide with additional comfort to ease debt of Rs 1.7 trillion.
In the June quarter of FY21, the Ebitda (earnings before interest, depreciation, taxes, and amortization) from Rs 4,100 crore (the amount of which is over 30,000 crores annually) was not sufficient to pay for its CAPEX, interest, deferred range, and adjusted gross income (AGR) dues.
The Supreme Court ruling hit the company hard in October of last year when Rs 58.254 crore AGR dues were demanded from the government. On Tuesday, the court gave all the companies 10 years time to pay all the past dues. Vodafone Idea paid the Telecommunications Department Rs 7,854 crores as AGR.
Vodafone Idea’s quarterly loss rose to Rs 25,460 crore in the first quarter of the fiscal year, compared to Rs 11,643 crore in the quarter of March of FY20.
Source: Business Standard
Later today Vodafone Idea has become new brad ‘Vi‘, as Vodafone Idea Merger Integrates Completely