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, the company stated.
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.
Vodafone Idea has been struggling for a while to raise capital, which is of utmost significance given the high debt on books. Further, it needs heavy capital investments for network upgradation and rollout of 5G services to compete with rivals Airtel and RJio. On Thursday, AB Group Chairman Kumar Mangalam Birla said that the group remains committed and is making all efforts to rope in external investors. The stock had rallied following the comments.