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Vodafone Idea aims to gather Rs 45,000 crore through a combination of equity and debt

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Vodafone Idea Ltd (VIL) shares will draw attention on Wednesday morning following the telecom operator’s announcement of raising a total of Rs 45,000 crore. This includes raising up to Rs 20,000 crore through a mix of equity and equity-linked instruments. The promoters plan to participate in the proposed equity raise, as previously committed.

Vodafone Idea announced plans to raise approximately Rs 45,000 crore through a mix of equity and debt. The company’s current bank debt is less than Rs 4,500 crore. This funding will support significant expansions in 4G coverage, 5G network rollout, and capacity.

“Operationally, this fundraise is a positive step. It will help VIL enhance its 4G services and narrow the gap in 5G rollout, potentially stabilizing subscriber numbers and generating sufficient EBITDA to meet debt obligations. However, financially, the fund size may not have a significant impact,” noted Nuvama.

Vodafone Idea stated that these investments will enhance the company’s competitive position and elevate customer satisfaction. The company emphasized that the proposed fundraising initiative follows a notable improvement in operational performance. Over the past 10 quarters, VIL has consistently expanded its 4G subscriber base and increased average revenue per user (ARPUs). Additionally, it remains committed to delivering competitive data and voice services across all its locations.

The board of directors of Vodafone Idea has approved raising funds through the issuance of equity shares or other financial instruments, such as convertible debentures, warrants, or securities convertible into equity shares, as well as global depository receipts, pending necessary regulatory approvals.

Vodafone Idea Ltd (VIL) shares will draw attention on Wednesday morning following the telecom operator’s announcement of raising a total of Rs 45,000 crore. This includes raising up to Rs 20,000 crore through a mix of equity and equity-linked instruments. The promoters plan to participate in the proposed equity raise, as previously committed.

Vodafone Idea announced plans to raise approximately Rs 45,000 crore through a mix of equity and debt. The company’s current bank debt is less than Rs 4,500 crore. This funding will support significant expansions in 4G coverage, 5G network rollout, and capacity.

“Operationally, this fundraise is a positive step. It will help VIL enhance its 4G services and narrow the gap in 5G rollout, potentially stabilizing subscriber numbers and generating sufficient EBITDA to meet debt obligations. However, financially, the fund size may not have a significant impact,” noted Nuvama.

Vodafone Idea stated that these investments will enhance the company’s competitive position and elevate customer satisfaction. The company emphasized that the proposed fundraising initiative follows a notable improvement in operational performance. Over the past 10 quarters, VIL has consistently expanded its 4G subscriber base and increased average revenue per user (ARPUs). Additionally, it remains committed to delivering competitive data and voice services across all its locations.

The board of directors of Vodafone Idea has approved raising funds through the issuance of equity shares or other financial instruments, such as convertible debentures, warrants, or securities convertible into equity shares, as well as global depository receipts, pending necessary regulatory approvals.

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Vodafone Idea board will discuss raising ₹20,000 crore in April 6 meeting - SMT FinMedia April 4, 2024 - 12:34 pm

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