Vodafone makes Rs 47,700 crore-capital infusion into its India unit

India Infoline News Service | Mumbai | September 23, 2016, 14:20 IST

It is the largest foreign direct investment (FDI) in India in rupee terms, exceeding BP's $7.2-billion purchase of a stake in Reliance Industries.

Vodafone Logo
An overseas investment of a whopping Rs 47,700 crore has been poured into the India operations of VodafoneGroup Plc by the company, reducing the unit's debt by half. The move is aimed at bringing the same into focus for the upcoming spectrum auction as also to fortify their market share, with the entry of Reliance Jio Infocomm, says an ET report.

The capital which has been pumped in, entails converting loans to shares in the first half of the fiscal in Vodafone. It is the largest foreign direct investment (FDI) in India in rupee terms, exceeding BP's $7.2-billion purchase of a stake in Reliance Industries, as per the report.

The move will enable Vodafone India to continue its investments in spectrum and expansion of networks across various technology layers", as per Chief Executive, Sunil Sood, said the report.

The company's net debt allays to Rs 34,300 crore with the aforementioned capital infusion and slashes the debt to equity ratio by half, said Sood. At the end of the last financial year, this stood at Rs 81,500 crore, leaving little free cash, said the report.

We are judiciously deploying a portfolio of technologies - 2G, 3G, 4G and IoT (Internet of Things) - to cater to the myriad connectivity needs of our retail and enterprise customers across the country," added Sood as mentioned in the report.
 

Advertisements

  • Get your free IIFL Demat & Trading A/c now...Click here
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.