On 3rd September a news broke out mentioning Amazon and Verizon communications investing in Vodafone-Idea. Few hints of such investment were visible earlier to traders as talks were on between Amazon, Verizon with Vodafone-Idea. The talks came to a halt due to the pending decision of the Supreme Court about payment of certain dues. It was assumed by many investors that the decision will not let this company stay on-going. But the decision was declared that the pending AGR’s (Adjusted Gross Revenue) could be repayed within a span on 10 years.
This decision affected many stocks positively, which included Vodafone-Idea. The company has to pay a total sum of Rs. 50,400 crores to the government for its license fees, spectrum usage charges, interest and penalties. Out of the total sum, Rs. 7,854 crores have already been repaid. Due to huge competition and cover payments to the government, Vodafone-Idea has recorded a staggered loss of Rs. 25,460 crores in the June quarter.
It was reported that the investment of Amazon and Verizon will be around $4 billion or more for a stake in Vodafone-Idea. This news had such a positive impact that the stock price of Vodafone-Idea plunged up to 54%.
On a late Tuesday evening, a statement was passed from the company’s side saying, “A meeting of the board of directors of the Company is scheduled to be held on September 4, 2020 to consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any instruments or securities.”
Before the meeting could be conducted, on Thursday a news was reported that Amazon, Verizon have no current plans of investing in Vodafone-Idea. In a regulatory filing, the board said, “Currently, there is no proposal as reported by the media that is being considered at the board.” VIL s looking out for institutions which will be ready to fund the company. The board meeting held today will consider and evaluate all the business proposals for fund raising. These funds will in turn be used to meet payment obligations and invest in network expansion, in one or more tranches.
NEWS REPORTED BY:
VRIDHI BHAGNARI.
