Aditya Birla Group Chairman Kumar Mangalam Birla emphasised the group’s commitment to Vodafone Idea and said that efforts are underway to attract external investors. 

Without providing a timeline for onboarding such investors, Birla said: “We remain very committed to Vodafone Idea and  efforts are on to get outside investors.”

Meanwhile, Vodafone Idea announced in a BSE filing that the  board will meet on February 27 to consider fundraising proposals. Multiple options like equity or debt instruments or rights issues. can be considered to raise funds..

“We wish to inform you that a meeting of the Board of Directors of Vodafone Idea Limited (the Company) will be held on Tuesday i.e. 27th February 2024, inter alia, to consider and evaluate any proposals for raising funds in one or more tranches by way of a rights issue, further public offer, private placement including preferential allotment, qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate,” the company said in its stock exchange filing. 

Vodafone Idea shares closed 6.27 per cent higher at  ₹16.28 per share on the BSE on Thursday. 

The capital raise could be by way of the issue of equity shares or by way of any instruments including “securities and convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds”.

Vodafone Idea’s net loss reduced to ₹6,986 crore for the December 2023 quarter. The improvement in the company’s performance was aided by ₹755.5 crore one-time exceptional gain. The telecom service provider’s average revenue per subscriber also increased in Q3 FY24. The company’s net loss stood at ₹7,990 crore in the year-ago period.

While announcing the company’s Q3FY24 results, Vodafone Idea CEO Akshaya Moondra said: “We remain engaged with various parties for fundraising to make required investments for network expansion, including 5G roll-out.”

Network investments for Vodafone Idea have been inordinately delayed as the firm has struggled to raise funds. Even as telcos, Reliance Jio and Bharti Airtel complete their network rollout, Vodafone Idea is yet to build its 5G network. Since 5G investments are contingent on new funds.