Vodafone Idea Limited (VIL) sanctioned a plan to raise funds amounting to Rs. 20,000 Crores through a mix of equity and equity-linked instruments. A shareholder meeting is scheduled for April 2, 2024, where final approval is anticipated, paving the way for the equity fundraising in the subsequent quarter.
Notably, the promoters have reaffirmed their commitment to participate in this equity raise, as previously promised. Additionally, discussions with lenders are ongoing to secure debt financing, expected to complement the equity infusion. Combined, the company aims to raise approximately Rs. 45,000 Crores, with current bank debt standing at less than Rs. 4,500 Crores.
These funds are earmarked for substantial enhancements in 4G coverage, the rollout of 5G networks, and bolstering capacity. Such investments are envisioned to enhance the company’s competitive stance and elevate customer experience significantly.
This initiative follows notable strides in operational performance, with VIL witnessing consecutive growth in its 4G subscriber base and Average Revenue Per User (ARPUs) over the past ten quarters. Moreover, the company is steadfast in providing competitive data and voice services across all its operating regions.
