Telecom Department Floats Cabinet Note On Vodafone Idea’s FDI Proposal

The telecom department has floated a cabinet note on proposed foreign fund infusion plans by India’s largest telecom operator Vodafone Idea Ltd, which is planning up to Rs 25,000 crore rights issue, according to a source.

A telecom department official privy to the development said the proposal is likely to be taken up by the cabinet soon. The official noted that a cabinet note has been circulated on the Foreign Direct Investment proposal linked to the proposed rights issue of the company.

An email sent to Vodafone Idea remained unanswered. Last month, the board of directors of Vodafone Idea had approved Rs 25,000 crore fund-raising plan by way of rights issue to existing eligible equity shareholders.

The promoter shareholders—Vodafone Group and Aditya Birla Group—have informed the board that they intend to contribute up to Rs 11,000 crore and up to Rs 7,250 crore, respectively, as part of such rights issue.