Voda Idea set to raise about Rs 45,000 cr via equity, debt

NEW DELHI: Vodafone Idea board on Tuesday approved a fund-raise of up to Rs 20,000 crore through a combination of equity and equity-linked instruments, the crisis-ridden telco said, adding promoters will also participate in the proposed equity raise.

Overall, Vodafone Idea plans to raise around Rs 45,000 crore through a mix of equity and debt, it said.

The company has been fighting a desperate battle for survival -- it has a debt of Rs 2.1 lakh crore and is reporting quarterly losses, amid massive subscriber churn. On Tuesday, the troubled telco said its Board of Directors have approved fund-raise of up to Rs 20,000 crores via a combination of equity and / or equity-linked instruments.

The Board has also authorised the management to appoint bankers and counsels to execute the fund raise. It will call for a meeting of its shareholders on April 2, 2024, and post-shareholders’ approval it expects to complete the equity fund raise in the coming quarter. The promoters will also participate in the proposed equity raise, as committed earlier. 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 Rs 45,000 crores,” it said.

Voda Idea said its bank debt stands at below Rs 4,500 crore. “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,” it added.