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 270 billion for financial year 2019 and financial year 2020, combined together. Out of that, roughly Rs 70 billion has been spent in first nine months. In next 15 months we are looking at capex deployment of Rs 200 billion,” Vodafone Chief Financial Officer Akshaya Moondra told analysts in a tele-conference.
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 under-subscribed, 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.
When contacted, Vodafone Idea confirmed investment details and said “capacity creation on account of consolidation of spectrum is over and above capacity creation with the above two categories of fresh capex and redeployed equipment”.