Vodafone Idea 's subsidiary Vodafone Idea Telecom Infrastructure Limited (VITIL) has successfully completed a significant fundraising exercise, raising ₹33 billion through the issuance of unlisted, unrated, secured non-convertible debentures (NCDs). This substantial capital mobilization represents a major financial milestone for the telecom group's subsidiary unit.

Fundraising Details

The NCD issuance by VITIL generated considerable capital with strong investor interest exceeding the issuance amount. The fundraising attracted a diversified group of marquee investors, demonstrating robust market confidence in the telecom infrastructure entity.

Investor Participation

The fundraising exercise witnessed strong participation from a diversified group of marquee investors, including large Non-Banking Financial Companies (NBFCs), Foreign Portfolio Investors (FPIs), and Alternative Investment Funds (AIFs). JM Financial Products Ltd. acted as the exclusive debt arranger for this fundraising initiative.

Fund Utilization Strategy

The proceeds from this NCD issuance will be utilized by VITIL to repay its payment obligations to Vodafone Idea. This strategic move will enable Vodafone Idea to bolster its capital expenditure and support business growth initiatives across its telecom operations.

Management Commentary

Speaking on the development, Abhijit Kishore, CEO of Vodafone Idea Limited, stated that this fresh fundraise reinforces investor confidence in the company's strategy and long-term vision. He emphasized that this capital strengthens the company's momentum as it continues to scale its network and enhance services for customers. The management also indicated that discussions relating to long-term debt raise to support capital expenditure are ongoing with banks.

Strategic Implications

This successful NCD issuance strengthens VITIL's financial position within the Vodafone Idea group structure. The capital injection enhances the subsidiary's financial flexibility while providing the parent company with resources for network expansion and service enhancement across its 5G rollout in multiple circles.

Vodafone Idea Limited has received a penalty order of ₹40.09 lakh from tax authorities in Rajasthan under the Central Goods and Service Tax Act, 2017. The telecommunications company disclosed this regulatory development through a filing under Regulation 30 of SEBI Listing Regulations.

Order Details and Authority

The order was issued by the Joint Commissioner, State Tax, Circle C, Jaipur II, AC/CTO, Ward: Circle-C, Jaipur II, Rajasthan. Vodafone Idea received the order on December 15, which was passed under Section 74 of the CGST/RGST Act, 2017.

Nature of Alleged Violation

The penalty order relates to allegations of input tax credit claimed from suppliers whose registration had been cancelled ab-initio during the financial year 2018-19. The tax authorities have confirmed a penalty of ₹40,09,461 along with applicable demand and interest under the goods and services tax framework.

Company's Response and Financial Impact

Vodafone Idea has stated its disagreement with the order and indicated that it plans to take appropriate action. The company has disclosed that the maximum financial impact is limited to the extent of tax demand, interest, and penalty levied as per the order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of SEBI Listing Regulations, 2015. The company has provided the required details as per SEBI Master Circular, ensuring full compliance with regulatory disclosure requirements.

The filing was signed by Pankaj Kapdeo, Company Secretary of Vodafone Idea Limited, and submitted to both the National Stock Exchange of India Limited and BSE Limited for record purposes.