Vodafone Idea raises Rs 1,500 crore via debt

New Delhi: Telecom major Vodafone Idea Limited on Monday raised Rs 1,500 crore fund through non-convertible debentures on private placement basis -- first debt after its incorporation.

"the Securities Allotment Committee have at their meeting held today i.e. on September 3, 2018, allotted 15,000 unsecured redeemable non-convertible debentures aggregating to Rs 1,500 crore on private placement basis," Vodafone Idea said in a regulatory filing.

The NCDs have maturity period of 5 years and have been offered at interest rate of 10.9 per cent per annum. Idea Cellular Ltd and Vodafone Plc on last Friday announced completion of the USD 23.2 billion (approximately Rs 1.6 lakh crore) merger of their India operations to create the country's largest telecom operator to take on competition from Reliance Jio.

The merged entity, called Vodafone Idea Ltd, will has a subscriber base of over 40.8 crore and a market share of over 35 per cent, overtaking Bharti Airtel to take numero uno spot.

The merger puts Vodafone India and Idea in a strong position to cut costs and thus compete effectively with Reliance Jio. Savings from the deal are estimated at Rs 14,000 crore.