The board of telecom company Vodafone Idea (VI) has approved raising funds of up to Rs 45,000 crore through equity and debt. The company has given this information in its exchange filing on Tuesday (February 27).
The company said the VI will raise Rs 20,000 crore through a combination of equity or equity-linked instruments. Apart from this, the company will raise the remaining funds through debt and promoters will also participate in this proposed equity raising.
The company said that it will call a meeting of its shareholders on April 2, 2024. The company expects to raise equity funds in the coming quarter after shareholders' approval.
Vodafone Idea said it will continue talks with its lenders for debt funding after raising equity funds. The company has planned to raise approximately Rs 45,000 crore through a combination of equity and debt.
The fundraising will help Vodafone Idea invest in expanding 4G coverage, 5G network rollout and capacity expansion. The company said in the filing that this investment will also enable the company to improve its competitive positioning and provide better customer experience.
The board has also authorized the management to appoint various intermediaries, including bankers and advisors, to raise funds. Ahead of the news of fund raising plan, Vodafone Idea shares closed at Rs 16.10 on Tuesday, down 4.45%.
However, Vodafone-Idea shares have given returns of about 10% to its investors in the last one month and 78.89% in the last six months. The company has given a return of 136.76% in the last one year.
Vodafone Idea is a partnership between Aditya Birla Group and Vodafone Group. The company provides pan India voice and data services on 2G, 3G and 4G platforms.
