New Delhi, Feb 27 The Board of Directors of Vodafone Idea at its meeting held on Tuesday approved a 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 said in a statement.
The company will call for a meeting of its shareholders on April 2, 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. Its 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 a 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 ARPUs consecutively for the last 10 quarters, Vodafone Idea said.
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