“The Board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise,” the company said in an exchange filing.
The telecom operator will conduct an extraordinary general meeting with shareholders on April 2 and seek approval for the proposed fundraising.
If shareholders approve, the company expects to complete the equity fund raise in the coming quarter.
The promoters will also participate in the proposed equity raise, as committed earlier, Vodafone Idea said.
Vodafone Idea remains actively engaged with its lenders for tying up debt funding, which will follow the equity fund raise. Through the combination of equity and debt, the cash-strapped operator plans to raise around Rs 45,000 crore. Vodafone Idea’s bank debt currently stands at less than Rs 4,500 crore.
“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 operator said.
As of December end, Vodafone Idea’s gross debt stood at Rs 2.15 lakh crore, comprising deferred spectrum payment obligations of Rs 1.38 lakh crore, AGR liability of Rs 69,020 crore due to the government, optionally convertible debentures amounting to Rs 1,660 crore, besides dues towards banks and financial institutions.
Vodafone Idea has managed to grow its 4G subscriber base and average revenue per user (ARPU) consecutively for the last 10 quarters. The improving operating metrics has prompted the company to tap the market for raising funds.
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