Vodafone Idea’s Board of Directors is set to meet on June 22 to consider and approve the proposal to raise funds of up to Rs 500 crore.
The fundraising will be through the issuance of transferable shares or guarantees on a preferential basis to one or more entities of the Vodafone Group (one of the Promoters of the Company).
“… a meeting of the Company’s Board of Directors is scheduled for Wednesday, June 22, 2022… to consider the proposal to raise funds amounting to Rs 500 crore, by way of issue of shares and/or transferable guarantees on a preferential basis to one or more entities affiliated with the Vodafone Group (one of the company’s promoters),” VIL said in a file to BSE on Sunday evening.
The move comes as the Indian telecom market gears up for the 5G spectrum auction and the subsequent launch of new era bids.
Following the September reforms announced by the centre, debt-laden Vodafone Idea has opted to convert about Rs 16,000 crore owed on interest payable to the government into equity.
This will result in the government owning a 33% stake in the company.
Sources in the Department of Communications (DoT) said that the capital transfer proposal submitted by VIL is in the final stages, and the required approvals are expected as early as 7-10 days.