vodafone idea: No proposal before Board on Amazon funding: Vodafone Idea

has said that while it is actively pursuing avenues to raise funds, “there is no proposal as reported by the media that is being considered by the Board.” The Bombay Stock Exchange had sought clarification from Vi on media reports that it is in the process of raising Rs 20,000 crore from global e-commerce giant Amazon, and a clutch of global investors.

Vi’s stock rose 3.4% on Tuesday, closing the day’s trading at Rs 9.62 on the BSE. It had recorded a jump of 6% intra-day Monday amid unconfirmed news reports of Amazon fund-raising.

The telco Tuesday said in its clarification that its board had approved raising of funds upto an aggregate amount of Rs 25,000 crore. “The company keeps exploring various opportunities and options to raise funds within the authorizations given by the board,” it added.

A person familiar with the matter said that there was “no truth” to the news report around an Amazon investment. Earlier this month, Vi’s managing director Ravinder Takkar had told ET that the telco is closer than it “has ever been” to tie up roughly Rs 20,000 crore it needs from lenders and external investors to take on rivals Reliance Jio and more effectively in the market.

Of the 20,000 crore, Vodafone Idea has been in talks with global private equity majors such as Apollo Global to raise Rs 10,000 crore in equity. It is in talks to get a further Rs10,000 crore as debt from lenders. The cash strapped telco recently raised Rs 4,500 crore from promoters — UK’s Vodafone (Rs 3,375 crore) and ABG (Rs 1,125 crore).

Following the fresh promoter-level capital infusion, Vodafone raised its stake in Vi to 47.61%. Indian conglomerate, ABG, which acquired fewer fresh shares in Vi, saw a tiny dip in its Vi stake to 27.4%

Vi Tuesday also reiterated that as and when such fund-raising proposals are considered by the Board of Directors of the company that warrant disclosures, it will comply with the disclosure obligations as required by the capital market rules.