Vodafone Idea has announced a major fundraising initiative, seeking to secure up to ₹45,000 crore through a mix of equity and debt instruments. The decision, which led to a 10% decline in the company’s share price to ₹14.29, was made after the board’s approval. The company plans to generate ₹20,000 crore from either equity or equity-linked options, with the remainder coming from debt. The company’s promoters are set to contribute to this equity funding effort.
A key shareholder meeting is scheduled for April 2, 2024, with the expectation of finalizing the equity fundraising in the subsequent quarter. Additionally, Vodafone Idea is in discussions with lenders to secure the necessary debt financing following the equity raise.
The funds will be instrumental for Vodafone Idea in enhancing its 4G network coverage, rolling out 5G services, and expanding overall capacity. These steps are expected to strengthen the company’s market position and enhance customer experience. Currently, the company’s bank debt is below ₹4,500 crore.
This fundraising initiative comes on the heels of positive operational growth for Vodafone Idea, marked by a steady increase in its 4G subscriber base and Average Revenue Per User (ARPU) over the last ten quarters. With these developments and the anticipated funding, Vodafone Idea is optimistic about its ability to compete effectively in the market.
