Vodafone Idea said it would raise up to ₹ 25,000 crore ($3.41 billion) in fresh capital as the telecom operator tries to pay off the hefty dues it owes to the government. The loss-making carrier has been ordered by the country’s top court to pay roughly ₹ 50,000 crore ($6.81 billion) in dues to the government over a 10-year period and it has so far paid ₹ 7,854 crore.
Vodafone said it would raise up to ₹ 15,000 crore through debentures and an equal amount by issuing shares and warrants, but together will not exceed ₹ 25,000 crore.
Vodafone lost 4.7 million subscribers in May alone, data from the country’s telecom regulator showed, while its gross debt stood at ₹ 1.19 lakh crore as of June-end.
The joint venture between Britain’s Vodafone Plc and Idea Cellular had last month reported its eight straight quarterly loss and unveiled a plan to reduce costs by ₹ 4,000 crore a year over 18 months.