Vodafone Idea rebrands itself, to go by brand name Vi

New Delhi: Vodafone Idea Ltd said on Monday announced that it will go by the brand name "Vi".

The Beleaguered telecom operator, announced the rebranding of the company through a virtual platform. "A brand with its eyes set on the future, it is built for and around customers... The integration of two brands is a culmination of the largest telecom integration in the world," VIL said in a statement.

Vodafone Idea, a joint venture between Britain`s Vodafone and India`s Idea Cellular on Friday approved plan to raise up to Rs 25,000 crore through a combination of equity and debt instruments to keep the company afloat.

The crucial decision came days after the Supreme Court directed telecom operators to pay 10 per cent of total adjusted gross revenue (AGR)-related dues this year, and rest of the payments in 10 instalments, starting next fiscal year.

The fund-raising will throw a lifeline to cash-strapped VIL, which has suffered massive losses, as it has been losing subscribers and average revenue per user (ARPU), and faces outstanding AGR dues of about Rs 50,000 crore.

In a filing on Friday, Vodafone Idea said its board has approved raising of funds through a combination of equity and debt instruments and that the total fund-raising will not exceed Rs 25,000 crore.

The company will consider fund-raising through GDR, ADR, FCCB, debentures or warrants.

The proposals will be taken up at the company's annual general meeting scheduled on September 30, 2020.

The company had reported a staggering Rs 73,878 crore of net loss in fiscal ended March 2020 - the highest ever by any Indian firm - after it provisioned for Supreme Court mandated statutory dues.

It reported a net loss of Rs 25,460 crore for the June quarter after making additional provisions to pay past statutory dues and had said its ability to continue as going concern hinges on the Supreme Court allowing more time to pay dues.

The apex court has rejected the demand for a 20 year time for telcos to clear a combined Rs 1.6 lakh crore in past dues, but allowed the liability to be cleared in 10 years.

Following the SC verdict earlier this month, some analysts had been of the view that Vodafone Idea may struggle to pay its dues in the 10 years that the Supreme Court granted to telecom companies, although Bharti Airtel may be able to meet the payment schedule.

With Agency Inputs