In a recent development, Vodafone Idea's Board of Directors, in a meeting held on Tuesday, has greenlit a fundraise of up to Rs 20,000 crore through a mix of equity and/or equity-linked instruments. The company has disclosed that it will engage various intermediaries, including bankers and counsels, to facilitate the fundraise process.
Scheduled for April 2, Vodafone Idea will convene a shareholder meeting to seek approval for the proposed fundraise, with plans to conclude the equity fundraising in the ensuing quarter. Notably, the promoters have reaffirmed their commitment to participate in the equity infusion, as previously pledged.
Furthermore, Vodafone Idea is actively collaborating with its lenders to secure debt financing, which will complement the equity infusion. The combined equity and debt raise is anticipated to amount to approximately Rs 45,000 crore. Presently, the company's bank debt stands at less than Rs 4,500 crore.
The infusion of both equity and debt capital will be earmarked for significant expansions, including bolstering 4G coverage, rolling out 5G networks, and enhancing capacity. These strategic investments aim to bolster the company's competitive edge and elevate customer experience.
The decision to pursue fundraising comes on the heels of noteworthy operational improvements, with Vodafone Idea reporting consecutive growth in its 4G subscriber base and Average Revenue Per User (ARPU) over the past 10 quarters.
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