Even as Vodafone Idea missed its self-imposed deadline to raise funds by December 31, 2023, its board has given fresh approval to raise ₹45,000 crore through a mix of debt and equity. This amount significantly exceeds previous fund-raising targets set by the firm. It was nearly two years ago that Voda Idea board approved a ₹20,000-crore fundraise as a mixture of debt and equity instruments. While it never fully completed that target, two years on, the Vi board on Tuesday has approved an equity fundraise of ₹20,000 crore via a combination of equity and equity linked instruments. Additionally, the board also announced its plans to raise an additional amount of ₹25,000 crore via debt funding. The firm expects to complete its equity fund raise in the coming quarter. 

“The Board of Directors (Board) of the company, at its meeting held today, approved fund raise of up to ₹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 fundraise. 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 firm disclosed to the exchanges on Tuesday evening. 

Vi  further clarified that the promoters, Kumar Mangalam Birla and Vodafone Plc, will also be taking part in the proposed equity raise.  Vi did not make any clear disclosures regarding the specifics of the exact break-up for the funding. No clear disclosures were made regarding the exact amount of equity that will come from the promoters, what the other sources of equity will be. At the time of filing the report, Vi did not respond to businessline’s questionnaire on the exact sources of the equity fundraise, as well as the banks that firm has approached for debt. 

Vi’s current debt stands at ₹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 firm added.

5G network

Vi’s network investments have been put on hold as the firm struggled to raise funds. Vi is the sole Indian operator which has not launched its 5G network. Reliance Jio and Bharti Airtel have nearly completed their pan India 5G network rollout.