The board of Vodafone Idea Limited (VIL) has approved a proposal for modification of the use of its proceeds from the Rs 250 billion right issue.
The company would now use Rs 28.26 billion towards adjusted gross revenue (AGR) dues, besides repayment of loans and redemption of non-convertible debentures, including interest.
The move comes after a two-year moratorium granted by the Department of Telecommunications (DoT) on deferred payment liabilities towards spectrum payments.
As per a regulatory filing by VIL, the board of directors has approved a resolution dated January 10, 2020, for the modification to the objects of the rights issue.
The company may have to revise its funding requirements and deployment on account of factors such as its financial condition, business requirements and strategy, including external factors such as market conditions, changes to the payment schedule for its deferred payment liabilities to the DoT, competitive environment, interest or exchange rate fluctuations and finance charges, which may not be within the control of its management, VIL said.
VIL needs to pay over Rs 530 billion in licence fee, spectrum usage charge (SUC), interest and dues linked to its AGR by January 23, 2019.
Earlier, in an offer letter floated by VIL in March 2019, the company had allotted about 20 billion equity shares by way of the rights issue on May 4, 2019, for an aggregate amount of Rs 249.99 billion. Under the letter of offer, Vodafone Idea had proposed to utilise 186.74 billion towards payment of certain deferred liabilities to the DoT and repayment of certain borrowings, including interest payment and spectrum dues.
