The board of debt-ridden Vodafone Idea will meet on April 6 to decide on a proposal of issuance of equity shares or convertible securities on a preferential basis, the company said on Wednesday.
At an extraordinary general meeting (EGM) on April 2, the company received shareholders' approval to raise up to Rs 20,000 crore via issuance of securities.
"We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Saturday, 6th April 2024, inter-alia, to consider proposal for issuance of Equity Shares and/or Convertible Securities on a preferential basis," Vodafone Idea (VIL) said in a regulatory filing.
VIL in a BSE filing mentioned the voting results of the EGM, where 99.01 per cent of the votes were cast in favour of the resolution pertaining to "issuance of securities up to an aggregate amount of Rs 20,000 crore".
The approval comes at a time when the debt-laden firm is planning to raise Rs 45,000 crore through a mix of equity and debt with hopes of matching services offered by rivals Reliance Jio and Bharti Airtel and arresting an alarming and prolonged subscriber exodus.
The fundraise will arm VIL to improve competitive positioning in the Indian telecom market, where it trails Jio and Bharti Airtel, by a wide margin.
In February this year, the company's board had approved raising up to Rs 20,000 crore in equity from promoters and other investors by June, as it looked to shore up finances for the much-delayed 5G rollout and strengthening 4G services.
Vodafone Idea -- in which the government now holds just over 33 per cent equity stake -- has been fighting a desperate battle for survival. It has a debt of Rs 2.1 lakh crore, has been reporting quarterly losses, and haemorrhaging subscribers.
TRAI's latest data showed that VIL lost 15.2 lakh wireless subscribers, plunging its mobile subscriber base to 22.15 crore in January -- its operational metrics standing out in sharp contrast to subscriber gains by Jio and Airtel.
