Vodafone Idea's shares plunged to almost 4 per cent after the telecom company announced that the Board of the company has approved an equity fund raise of up to Rs. 20,000 Crores.
The company's board authorized the management to appoint intermediaries like bankers and counsels for the fund raise. A shareholder meeting is scheduled for April 2, 2024. Post shareholder approval, Vodafone Idea plans to finalize the equity fund-raising within the following quarter.
At 9:40 am, the shares of the company were trading at Rs 15.65 price level, down by 1.26 per cent on NSE.
The telecom company is also in discussions with its lenders to secure debt funding, which will occur post the equity fund raise. The Company plans to raise around Rs. 45,000 Crores through a mix of equity and debt. As per the company's regulatory filing, Vi's bank debt is below Rs. 4,500 Crores.
"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 company stated in its exchange filing.
"The proposed fund raise follows a marked improvement in operating metrics. The Company has managed to grow its 4G subscriber base and ARPUs consecutively for the last 10 quarters."
The company is committed to delivering competitive data and voice services across all its locations. It plans to enhance its offerings by introducing various digital services in the coming quarters.
