homemarket Newsstocks NewsVodafone Idea, Indus Towers shares rise ahead of former's board meet today
Vodafone Idea, Indus Towers shares rise ahead of former's board meet today
Since its merger, Vodafone Idea has faced a cumulative loss of Rs 1.75 lakh crore and its total debt stands at Rs 2.2 lakh crore.
Shares of debt-ridden telecom operator Vodafone Idea and tower company Indus Towers are up for the second day running ahead of Vodafone Idea’s board meeting today to consider the preferential issue of optionally convertible debentures (OCDs) to ATC Telecom Infrastructure Pvt. Ltd.
Besides the allotment of OCDs, the board will also look to convene an Extraordinary General Meeting of to seek approval of the shareholders in this regard.
Earlier, the company had informed the stock exchanges that the shareholder resolution on November 21, 2022, approving the preferential issue of OCDs to ATC Telecom had lapsed as the OCDs could not be issued within the prescribed period of 15 days from approval.
Further, a fresh approval of the shareholders would be sought as required under the rules.
Since its merger, Vodafone Idea has faced a cumulative loss of Rs 1.75 lakh crore and its total debt stands at Rs 2.2 lakh crore. Its subscriber base went down nearly 42 percent from 422 million to 245 million.
Shares of Indus Towers also gained over 7 percent in intraday trade on Monday ahead of Vodafone’s board meeting. Vodafone Plc owns a 21 percent stake in Indus Towers and also has three seats on the latter's board. Vodafone Plc pledged its stake in Indus in 2019 to take out loans.
Indus Towers' board had warned Vodafone Idea in September of discontinuation of services over pending dues that amounted to nearly Rs 7,000 crore. Following this, Vodafone Idea sought softer repayment terms, which led to Indus Towers allowing the telco to make staggered payments by July 2023 to pay up the pending dues.
However, the company said that Vodafone Idea's promise of making full payments from January 2023 has not materialised.
Vodafone Idea is also plagued with a consistent loss in subscribers. The company has lost close to 1 crore subscribers over the last three months.
Shares of Vodafone Idea are trading 2.2 percent higher, while those of Indus Towers are trading with gains of 5.3 percent. The two-day surge has meant Indus Towers has managed to recoup most of its losses it made on Friday.
(Edited by : Rukmani Krishna)
First Published: Jan 30, 2023 2:23 PM IST
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