Vodafone Idea to Raise Rs 20,000 Crore, Promoters to Pitch in as Well

Vodafone Idea’s (Vi) board of directors met on Feb 27, 2024, to discuss fundraising options. In a release, the telco has confirmed that its board has decided to raise Rs 20,000 crore through equity and/or equity-linked instruments. The company will hold a shareholders meeting on April 2 to get their nod for going ahead with the fundraiser.

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What’s major is that the telco expects to raise money in the coming quarter, which is Q1 FY25. Further, Vi said that its promoters are also going to participate. So it is pretty evident that the Aditya Birla Group will pitch in additional capital into the company. However, it needs to be a substantial amount of capital to ensure that the interested parties (wanting to invest in Vi via equity) or lenders see the confidence that the promoter has in the company.

Apart from equity, Vi will also look to raise money through debt-funding. Through a combination of debt and equity, Vi wants to raise about Rs 45,000 crore. This means that the telco is looking to raise about Rs 25,000 crore through debt. Vi’s total bank debt today stands at Rs 4,500 crore, and the telco is repaying it quickly and in a timely manner.

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Here’s what Vi Said Would Happen through the Fund Raising

Vi said in a release, “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.”

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