There’s been a boost for efforts by Indian operator Vodafone Idea (aka Vi) to raise more funds after an extraordinary general meeting (EGM) on Tuesday, the results of which were announced today.
Shareholders of Vodafone Idea have voted in favour of its proposal to raise Rs 20,000 crore (roughly US$2.4 billion) through equity and equity-linked instruments.
It was in late February that Vodafone Idea announced that the company’s Board of Directors had approved the equity financing plan.
According to India’s Economic Times news service this plan could involve convertible debentures, warrants, or other securities convertible into equity shares, global depository receipts, American depository receipts or foreign currency convertible bonds.
With shareholders’ approval now in place, the company expects to complete the equity fund raise in the coming quarter, though, in fairness, it would have been a big surprise had the approval not happened.
Vi is also looking to engage with its lenders to tie up debt funding, which will follow the equity fund raise.
Through a combination of equity and debt, the company plans to raise around Rs. 45,000 crores (about US$5.4 billion).
The company certainly needs this funding. It has massive debts and needs to bolster its position in 4G. It also has a lot of catching up to do in 5G. Subscriber numbers are apparently falling too. A Communications Today report put Vodafone Idea’s gross mobile user base at 221.52 million in January, way behind Jio (463.99 million) and Airtel (382.48 million).
