Vodafone Idea approves fund raise of up to Rs 20,000 crore; Know details here

Vodafone Idea's Board of Directors on Tuesday (February 27, 2024) approved a fund raise of up to Rs 20,000 crore. The company said in a statement that the fund would be raised via a combination of equity and/or equity-linked instruments.

"The Board has also authorised the management to appoint various intermediaries, including bankers and counsels, to execute the fund raise. The Company will call for a meeting of its shareholders on April 2, 2024, and post-shareholder approval, it expects to complete the equity fund raise in the coming quarter," said Vodafone Idea in a statement post-market hours on Tuesday.

The promoters will also participate in the proposed equity raise, as committed earlier, the company said.

Vodafone Idea plans to raise around Rs. 45,000 crore

Vodafone Idea further said that it plans to raise Rs 45,000 crore through equity and debt, and it remains actively engaged with its lenders to tie up the debt funding, which will follow the equity fund raise.

"Through a combination of equity and debt, the Company plans to raise around Rs. 45,000 crores. The Company’s bank debt currently stands at less than Rs. 4,500 crores. The equity and debt fund raising 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," the company further stated.

The company stated that the equity and debt funding will enable the company to make investments towards significant expansion towards its 4G coverage and 5G network rollout, along with its capacity expansion. 

Vodafone Idea Share Price

The stock of Vodafone Idea ended the trading session on BSE down by 5.93 per cent, or Rs 1.00, at Rs 15.87.