Vodafone Idea plans to raise Rs 45K cr through combination of equity and debt

The Board of Directors of Vodafone Idea has approved a fund raise of up to Rs 20,000 crore via a combination of equity and/or equity-linked instruments. The company plans to raise around Rs 45,000 crore through a combination of equity and debt, with a focus on 4G and 5G expansion.

The Board authorized the management to appoint intermediaries for fund raise execution. Shareholder meeting is scheduled on April 2 for approval and promoters will also participate. The company is actively engaged with lenders for tie-up debt funding following equity raise completion.

The equity and debt fund raise will facilitate investments in 4G coverage, 5G rollout, and capacity expansion, aiming to enhance competitive positioning and customer experience. Operating metrics have improved with consecutive growth in 4G subscriber base and ARPU over the last 10 quarters, Vodafone Idea reported.

The company’s bank debt is below Rs 4,500 crore, indicating a strong financial standing for fund raising. The proposed fund raise is expected to support the company’s growth and expansion plans, ensuring a robust network infrastructure and enhanced services for customers.