Telecom major Vodafone Idea Limited reportedly raised Rs. 1,500 crores fund through the issuance of non-convertible debentures on private placement basis, first debt after its incorporation.

Vodafone Idea said in a regulatory filing, “The Securities Allotment Committee have at their meeting held on September 3, 2018, allotted 15,000 unsecured redeemable non-convertible debentures aggregating to ?1,500 crore on private placement basis.”

The NCDs (non-convertible debentures) have a maturity period of 5 years and have been offered at an interest rate of 10.9% per annum. Idea Cellular Ltd and Vodafone Plc announced the completion of the approximately Rs. 1.6 lakh crore merger of their India operations to create the largest telecom operator in the country to take on competition from Bharti Airtel and Reliance Jio.

The merged entity, called Vodafone Idea Ltd, will have a subscriber base of over 40.8 crores and a market share of over 35%, overtaking Bharti Airtel to take the number one spot. The merger puts Vodafone India and Idea in a strong position to cut costs and thus compete effectively with its competitors. Savings from the deal are estimated at Rs. 14,000 crores.

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