The Board of Directors of Vodafone Idea Ltd., at its meeting held on Tuesday, approved fund raise of up to ₹20,000 crore via a combination of equity and / or equity-linked instruments.
ADVERTISEMENT
The board had also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise, VIL said in a filing with exchanges.
The company would 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.
ADVERTISEMENT
The promoters will also participate in the proposed equity raise, as committed earlier, the company said.
“In addition, the company remains actively engaged with its lenders for tying-up the debt funding, which will follow the equity fund raise. Through a combination of equity and debt, the company plans to raise around ₹45,000 crore. The company’s bank debt currently stands at less than ₹4,500 crore,” the company said in a statement.
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, it said.
The proposed fund raise follows a marked improvement in operating metrics. The company has managed to grow its 4G subscriber base and ARPUs consecutively for the last 10 quarters.
The company said it had consistently shown an improvement in performance even with limited investments. With the proposed fund raise and the positive operational developments, the company is confident of effectively competing in the market.