Vodafone Idea board to meet on Feb 27 to mull fundraising via equity

New Delhi: Vodafone Idea (Vi) on Thursday said its board will meet on February 27 to consider and evaluate proposals for raising funds. The funds can be raised in one or more tranches by way of a rights issue, further public offer, private placement basis among others etc.

“We wish to inform you that a meeting of the board of directors of Vodafone Idea will be held on February 27, 2024, inter alia, to consider and evaluate any and all proposals for raising of funds in one or more tranches…,” the company said in a filing to BSE.

It said the funds can be raised by way of a rights issue, further public offer, private placement including preferential allotment, qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate.

Further, the filing said proposals for raising funds will be considered by way of issue of equity shares or by way of issue of any instruments or securities including securities convertible into equity shares, global depository receipts, American depository receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed.

The company needs funds to pay large vendors like Indus Towers and the government, expand 4G coverage and invest in 5G rollout to compete effectively with bigger rivals Reliance Jio and Bharti Airtel.

While Vodafone Idea had earlier announced that it was looking to mobilise about Rs 20,000 crore from a mix of debt and equity, the company has lately been refraining from giving an update on the plan.

Chief executive Akshaya Moondra had earlier said that discussions with potential investors would close in the December quarter, followed by debt funding from banks. But ET reported that the equity fundraising had been delayed and might close in this January-March quarter.



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