Vodafone Idea to use part of rights issue proceeds to pay AGR dues

MUMBAI: Vodafone Idea’s board has approved modification of the use of the ₹25,000-crore rights issue funds to pay ₹2,826.1 crore towards the adjusted gross revenue (AGR) dues besides for repayment of loans and the redemption of non-convertible debentures, including interest.

The change comes on the back of a two-year spectrum payment moratorium offered by the government as a relief measure to telcos. Vodafone Idea needs to pay over ₹53,000 crore in license fee, spectrum usage charge (SUC), interest and penalties — dues linked to its AGR — by January 23, as per a Supreme Court order.

“The board of directors of the company has, by a resolution dated January 10, 2020, approved the modification to the objects of the rights issue,” Vodafone Idea said in a regulatory statement late on Sunday night.