On April 6, Vodafone Idea’s board will discuss issuing equity or convertible securities worth up to ₹2,075 crore to one or more promoter group entities, as per a notice to BSE.
Following shareholder approval, the third largest carrier plans to raise ₹20,000 crore by issuing securities.
Vodafone Idea’s board greenlit a ₹45,000 crore fundraising plan, including a ₹20,000 crore equity infusion from current investors, on February 27. With approval secured, the telecom company aims to finish the equity fundraising by June’s end.
The existing promoters, including Vodafone Group Plc from Britain, are anticipated to partake in the equity fundraising, although confirmation is pending.
After securing equity funds, Vodafone Idea plans to raise debt, aiming for a total funding of up to ₹45,000 crore. This fundraising is essential for the company to launch its 5G services. Unlike Reliance Jio and Bharti Airtel, Vodafone Idea is yet to introduce 5G services to consumers nationwide.
The financially struggling mobile service provider faces significant challenges, including a massive debt of ₹2.1 trillion and declining subscriber numbers. According to Trai’s latest data, the company lost 1.5 million users in January, compared to 1.4 million in December 2023. Its total subscriber base of 221.5 million is lower than Airtel’s 382.5 million and Reliance Jio’s 464 million users.
In early Thursday trading on the NSE, Vodafone Idea shares were priced at ₹13.70, marking a 1% increase from the previous day’s closing price amid generally positive market conditions.
You might also be interested in – Vodafone Idea aims to gather Rs 45,000 crore through a combination of equity and debt
