Vodafone Idea to raise up to Rs 20,000 crore

Vodafone Idea Ltd. | Telecommunication - Service Provider | Telecom | BSE: 532822 | NSE: IDEA

28 Feb 2024 Evaluate

Vodafone Idea has received approval from Board of Directors for fund raise of up to Rs 20,000 crore via a combination of equity and / or equity-linked instruments. The Board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise. The Company will 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.

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 crore. The Company’s bank debt currently stands at less than 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. These investments will enable the Company to improve its competitive positioning and offer an even better customer experience.

The proposed fund raise follows a marked improvement in operating metrics. The Company has managed to grow its 4G subscriber base and average revenue per users consecutively for the last 10 quarters. Further, the company remains focused on providing competitive data and voice experience at all locations where it is present. Company is also steadfast in building a differentiated digital experience adding several digital offerings in the recent quarters. The Company has 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. The Board of Directors of the Company at its meeting held on February 27, 2024 has approved the same.

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence.