Vodafone Idea is planning to raise Rs 2,000 crore through a preferential equity issue to Vodafone Group Plc. The purpose of this is to settle outstanding dues to Indus Towers and improve discussions for debt funding with lenders.
Vodafone Plc recently sold a 3 percent stake in Indus Towers for Rs 2,802 crore, with the proceeds being used to repay $101 million to lenders and partially address Vodafone Idea's past dues of Rs 3,600 crore.
On December 9, Vodafone Idea will consider the proposal for the equity raise. Analysts anticipate a similar strategy to previous transactions, such as the sale of a 4.7 percent stake in Indus Towers to Bharti Airtel in March 2022. The details regarding the share issuance price, whether at the current market price or face value, are yet to be clarified.