Vodafone Idea clarifies its position following reports of Amazon investment

Vodafone Idea(Vi), on Wednesday clarified claims that the telecom giant was in talks with Amazon and private equity companies (PEs) for a 20,000 crore investment, saying  while Vodafone Idea is constantly looking for ways to generate money, "there is no plan as reported in the media that is being examined by the board," according to the company.

The telecom firm has clarified  its position following reports  that  Amazon and a group of international investors  are in talks with Aditya Birla Group  to invest up to Rs 20,000 crore in Vodafone Idea. The profits of the sale will be used to bid in the upcoming 5G  spectrum auction as well as capital expenditures for 5G roll-outs  expected by the end of this year.

The Bombay Stock Exchange(BSE),had sought clarification from Vi about media claims that it was in the midst of obtaining Rs 20,000 crore from Amazon and a group of international investors. On Tuesday, Vi's stock surged 3.4 percent on the BSE, completing the day at Rs 9.62. It had risen 6% intraday on Monday, owing to unsubstantiated news rumors of Amazon fund-raising.

The telecom firm  in a statement said, that its board of directors had approved a cash raise of up to  Rs 25,000 crore at its meeting held on September 4, 2020,  "Within the authorizations given by the board, the firm continues to explore various avenues and choices to acquire capital," it added. According to a source acquainted with the situation, the press article of an Amazon investment was, "completely false."

"At this time, the board is not considering any proposal that has been reported in the media. We would like to underline and emphasise that the company will comply with SEBI listing regulations and would keep the stock exchanges properly informed of all price sensitive information," Vi stated in a filing today.