Vodafone Idea Promoter Holdings to Fall post Fundraise

Vodafone Idea (Vi), the third-largest telecom operator in India, has been eyeing to raise funds for several years. On April 2, 2024, Vi took votes from its shareholders to go ahead with Rs 20,000 crore fundraising through equity. The telco’s CEO (Chief Executive Officer) of Vi, Akshaya Moondra, said that post fundraising, the promoter shareholding in Vodafone Idea would come down to 40% from the current 50%. The CEO reassured the shareholders that 40% equity is still a significant stake for the promoters to keep control over the company.

• Make Telecom Talk My Trusted Source
• 
• 

Read More – Vodafone Idea Rs 701 Postpaid Plan is One of the Best, Here’s Why

Vodafone Idea has been Losing Subscribers and this is the Reason

Other private telcos in the market, including Bharti Airtel and Reliance Jio have been eating up the market share of Vodafone Idea. Moondra attributed the reason for the subscriber loss to an inferior 4G network coverage. Thus, the fundraising will enable Vi to increase capex to expand its 4G networks in India.

Bharti Airtel and Reliance Jio are already targeting rural towns with their 4G and 5G networks, which would further cause subscriber loss to Vi. The complete plans of Vi’s fundraising activity also include raising money through debt. The telco won’t shy away from raising further debt via lenders and financial institutions because it has been paying off the bank dues on time.

Also Read: Vodafone Idea Launches eSIM Services for Prepaid Customers in New Delhi