Vodafone Idea, a major telecom player in India, has set its sights on a significant fundraising initiative to the tune of Rs 45,000 crore. The company aims to bolster its financial standing through a combination of equity and debt, as per a recent announcement made on February 27.
The board of Vodafone Idea has greenlit the fundraising plan, which includes raising Rs 20,000 crore via equity or equity-linked instruments, with the remainder to be sourced through debt. Notably, the company’s promoters are poised to participate in the equity raise.
In preparation for the fundraising endeavor, Vodafone Idea plans to convene a shareholder meeting on April 2, 2024, seeking the necessary approvals to proceed. Following shareholder assent, the company anticipates completing the equity portion of the fundraise in the ensuing quarter.
With a clear focus on enhancing its infrastructure and service offerings, Vodafone Idea intends to utilize the raised capital to expand its 4G coverage, facilitate the rollout of 5G networks, and enhance overall capacity. This strategic investment is expected to bolster the company’s competitive edge while ensuring an enhanced customer experience.
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Moreover, Vodafone Idea underscores its commitment to fortifying its operational metrics, citing consecutive growth in its 4G subscriber base and Average Revenue Per User (ARPU) over the past ten quarters. The company remains steadfast in its mission to deliver superior data and voice services across all its operational regions, alongside an evolving suite of digital offerings.
The announcement of the fundraising initiative has already begun to make waves in the market, with Vodafone Idea’s shares witnessing a notable 4 percent surge over the past five trading sessions. However, on February 27, the company’s stock closed 4.45 percent lower at Rs 16.1 on the National Stock Exchange.
Vodafone Idea, a joint venture between the Aditya Birla Group and Vodafone Group, operates as a key player in India’s telecommunications landscape, offering comprehensive voice and data services across 2G, 3G, and 4G platforms.