Vodafone Idea Modifies Objects Of Its Rights Issue After DoT Relief

Late on Sunday night, Vodafone Idea in a stock exchange filing said that its board has approved to modify the objective of the utilisation of proceeds from its Rs 249,997.89 million rights issue.

The telecom operator said that under the "Letter of Offer" of the rights issue, it was proposed to utilize an amount of Rs 186,747.89 million towards payment of certain deferred payment liabilities to the Department of Telecommunications (DoT) and repayment of certain borrowings.

"The aforesaid amount included an amount of Rs. 28,261 million to be utilised as part payment towards a deferred payment liability of Rs. 62,771 million to DoT which was payable by 9 April 2020," it said.

"The DoT has now granted a two year moratorium on deferred payment liabilities towards spectrum payments to telecom companies and hence the amount of Rs.28,261 million earlier earmarked for payment of deferred payment liabilities identified in the Letter of Offer need not be utilized for that purpose," it added.

The company will utilise these proceeds on the redemption of Non-Convertible Debentures (including interest) and repayment of loans.

Shares of Vodafone Idea were fluctuating between Rs 6.05 and Rs 6.10 on Monday.

The government has provided a 2-year breather for Bharti Airtel and Vodafone Idea on the deferred payments for spectrum purchases which they were initially required to pay within months after the 24 October Supreme Court hearing.