Voda Idea to in­vest `20K cr in net­work

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - —PTI

New Delhi: The coun­try’s largest tele­com firm Voda­fone Idea is plan­ning to in­vest around Rs 20,000 crore in net­works over the next 15 months, ac­cord­ing to com­pany of­fi­cials.

“We have given capex of Rs 27,000 crore for the fi­nan­cial year 2019 and fi­nan­cial year 2020, com­bined to­gether. Out of that, roughly Rs 7,000 crore has been spent in the first nine months. In next 15 months we are look­ing at capex de­ploy­ment of Rs 20,000 crore,” Voda­fone chief fi­nan­cial of­fi­cer Ak­shaya Moon­dra told an­a­lysts.

The com­pany is also plan­ning to raise Rs 25,000 crore through rights is­sue, in which the pro­moter share­hold­ers -- Voda­fone Group and Aditya Birla Group -have re­it­er­ated to the board that they in­tend to con­trib­ute up to Rs 11,000 crore and Rs 7,250 crore, re­spec­tively as part of such rights is­sue.

The pro­moter share­hold­ers have also said that in case the rights is­sue is un­der­sub­scribed, each of the pro­moter share­hold­ers re­serves the right to sub­scribe to part or whole of the un­sub­scribed por­tion.

Moon­dra told an­a­lysts that the capex guid­ance of Rs 27,000 crore does not in­clude ca­pac­ity that will be cre­ated by reusing equip­ment from the syn­ergy of op­er­a­tions be­tween Voda­fone and Idea, which is es­ti­mated to be val­ued at around Rs 6,200 crore.

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