Vodafone Idea is planning to discuss a proposal to raise up to Rs 2,000 crore through a preferential equity issuance to one of its promoter entities during a Board of Directors meeting on December 9, 2024.
The telecom company has notified stock exchanges about this and stated that the funds will be raised by issuing equity shares and/or convertible securities to entities within the Vodafone Group.
This announcement follows Vodafone Plc's plan to sell shares worth Rs 2,700 crore in a block trade on December 5.
Currently, Vodafone Idea has a cash and bank balance of Rs 13,620 crore, which it believes is sufficient to support its remaining capital expenditure plans of Rs 8,000 crore for the second half of FY25.
The company is also actively working with lenders to secure debt funding for its long-term network expansion.
In Q2FY25, the company's bank debt was reported at Rs 3,270 crore, a significant decrease from Rs 7,830 crore in the previous year.