Vodafone Idea plans to raise Rs 45,000 crore via equity, debt
Vodafone Idea announced a massive refinancing plan of up to Rs 45,000 crore, which will be raised through a combination of equity and debt including promoter financing.
The company’s board on Tuesday approved the equity fund raise of up to Rs 20,000 crore by way of equity-linked instruments which could be convertible debentures, warrants, or other securities convertible into Equity Shares, Global Depository Receipts, American Depository Receipts or Foreign Currency Convertible Bonds.
“The promoters will also participate in the proposed equity raise, as committed earlier,” Vi said in an exchange filing on Tuesday.
“In addition, the company remains actively engaged with its lenders for tying up the debt funding, which will follow the equity fundraising. Through a combination of equity and debt, the company plans to raise around Rs 45,000 crore. The company’s bank debt currently stands at less than Rs. 4,500 crore,” it said.
The Board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise. 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, it said.
The equity and debt fundraising 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
