The board of Vodafone Idea is set to meet on Monday, December 9, 2024, to consider a proposal to raise up to ₹2,000 crore through the issuance of equity shares and/or convertible securities on a preferential basis to one or more entities belonging to the promoter Vodafone Group. The company disclosed this plan in a filing on December 4.
Vodafone Group currently holds a 22.56% stake in Vodafone Idea, while the Aditya Birla Group and the government hold stakes of 14.76% and 23.15%, respectively.
Vodafone Idea stated that after settling its debt obligations, the remaining proceeds will be used for the issuance of new equity shares, with the terms of the capital raise to be finalized by the board.
The company also noted that future tariff hikes are planned, but there is limited scope for increases at the entry level. Instead, higher consumption tiers will see more significant adjustments.
In November, the government approved waiving bank guarantees for spectrum purchases made before 2022, a move expected to provide relief to Vodafone Idea. The company currently owes over ₹24,700 crore in bank guarantees to the government.
