Vodafone Idea to consider raising as much as Rs 2,000 crore in key board meeting today

Vodafone Idea’s plan to raise Rs 2,000 crore through equity shares or convertible securities on a preferential basis to Vodafone Group Plc will allow the telco to clear its outstanding dues to Indus Towers and likely boost its debt-funding discussions with lenders, analysts said.

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26 Aug, 2025 12:21

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The board of Vodafone Idea will consider on December 9, Monday, a proposal to raise up to from entities belonging to the promoter Vodafone Group.

" … a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 9 December 2024, inter-alia, to consider proposal for raising of funds not exceeding Rs 2,000 crore, by way of issuance of equity shares and / or convertible securities on a preferential basis to one or more entities belonging to Vodafone Group," the company said in a filing on December 4.

The Vodafone Group holds a 22.56 per cent stake in Voda Idea, with Aditya Birla Group's stake at 14.76 per cent and the government's stake at 23.15 per cent.

Vodafone Idea had said that after settling the debt, the company will contribute the residual proceeds towards an issue of new equity shares by Vi, after the terms of the capital raise are decided on by the Board.

Vodafone Idea’s proposal to raise Rs 2,000 crore through equity shares or convertible securities on a preferential basis is expected to help the telecom company settle its outstanding dues with Indus Towers. Analysts believe this move could also strengthen its discussions with lenders regarding debt funding, providing a much-needed financial boost to the company.

Vodafone Idea also said that going forward, tariff increases will happen, but there is 'not too much of room' to increase tariff at the entry level, and will increase more at the higher consumption levels.

In November, Moneycontrol had reported that the Centre has approved the waiving of bank guarantee for telecom operators on spectrum purchased before 2022. The move is seen as a relief to Vodafone Idea, which owes the government over Rs 24,700 crore on bank guarantees (BG).