Vodafone Idea board approves equity fund raise of up to ₹20,000 crore

Vodafone Idea on Tuesday said its board has approved fundraising of up to ₹20,000 crore via a combination of equity or equity-linked instruments.

"The board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fundraising," Vodafone Idea said in a regulatory filing.

The company will hold a meeting with its shareholders on 2nd April 2024 to seek approval for the proposed fundraising.

"Post-shareholder approval, Vodafone Idea expects to complete the equity fund raise in the coming quarter. The promoters will also participate in the proposed equity raise, as committed earlier," the company said.

The telecom operator said that it remains actively engaged with its lenders for tying up the debt funding, which will follow the equity fundraising. "Through a combination of equity and debt, the Company plans to raise around ₹45,000 crores. The Company’s bank debt currently stands at less than ₹4,500 crores," it said.

"The equity and debt fundraising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion. These investments will enable the company to improve its competitive positioning and offer an even better customer experience," VI added.

The shares of Vodafone Idea were trading at ₹16.10, down 4.45% on 27th February, 2024.