Vodafone Idea Board Approves Raising Up To $2.40 Bln Via Securities

Indian telecom operator Vodafone Idea Ltd. said its board approved raising as much as 20,000 crores rupees ($2.40 billion) via a combination of equity and equity-linked instruments.

Funds will be raised via issue of equity shares or any instrument or security, including convertible debentures, warrants, or other securities convertible into equity shares, global depository receipts, American depository receipts or foreign currency convertible bonds, Vodafone Idea said in a stock exchange announcement.

The cash-starved company will mop up funds in one or more tranches through a further public offer, private placement, including preferential issue and qualified institutional placement, it added.

Vodafone Idea, an Aditya Birla Group and UK-based Vodafone Group partnership, said its board has authorized the capital raising committee to evaluate and decide the potential route of fund raising, including all related matters.

The company said the management will appoint various intermediaries, including bankers and counsels to execute the fund raise. The promoters will also participate in the proposed equity raise, it added.

Vodafone Idea said it will convene an extraordinary general meeting on 2 April to seek shareholders’ approval for the fundraising. Following the approval, the company expects to complete the equity fund raise in the coming quarter.

ADDITIONAL DEBT FUNDING

Vodafone Idea said it also remains actively engaged with its lenders to secure debt funding, which will follow the equity fund raise. Through a combination of equity and debt, the company plans to raise around 45,000 crore rupees, it added.

The company, which competes with Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd., said its bank debt currently stands at less than 4,500 crore rupees.

“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,” Vodafone Idea said.

With the proposed fund raise and the positive operational developments, the company is confident of effectively competing in the market, it added.

Note: $1 = 82.8809 Indian rupees

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