The board of telecom major Vodafone Idea on June 22 approved the plan to raise a fund of Rs 436 crore from a Vodafone Group entity, via issuance of up to 42.76 lakh equity shares or warrants convertible into equity shares.
The board of directors, which met earlier in the day, has "approved raising of funds aggregating up to Rs 436.21 crore by way of issuance of either: (a) up to 42,76,56,421 equity shares of the face value of Rs 10 each; or (b) up to 42,76,56,421 warrants convertible into equity shares, to Euro Pacific Securities Ltd (a Vodafone Group entity and promoter of the company), on a preferential basis", a regulatory filing noted.
The company has called an extraordinary general meeting on July 15 to seek "approval of shareholders" on the proposal to raise the funds through the preferential issue, it added.
Vodafone Idea, which returned from the brink of bankruptcy last year following government aid, has reportedly been on the hunt for investors to raise fresh capital to pay down its debt and invest in its network.
The company had allowed the government to convert a major chunk of its adjusted gross revenue due and interest payments into equity. However, persistent loss of subscribers have weighed on the company even as the sector has managed to substantially raise tariffs in the past three years.In the quarter ended March, Vodafone Idea showed signs of revival as it added more than 1 million new 4G subscribers while its consolidated operating profits grew 22 percent aided by recent tariff hikes.