In Short:
Shareholders of Vodafone Idea have approved a plan to raise Rs 20,000 crore through equity. The company plans to complete the fund raise in the next quarter with the participation of promoters. Vi also plans to engage with lenders for debt funding. The details of the resolutions passed at the EGM have not been made public yet. The company aims to raise a total of Rs 45,000 crore through a combination of equity and debt.
Vodafone Idea Shareholders Approve Equity Fund Raise of Rs 20,000 Crore
Shareholders of telecom company Vodafone Idea (Vi) have voted in favour of its proposal to raise Rs 20,000 crore through equity and equity-linked instruments. The results of the extraordinary general meeting (EGM) were announced on Wednesday.
Equity Fund Raise Approval
With shareholders’ approval in place, the company expects to complete the equity fund raise in the coming quarter. Promoters of the company will also participate in this round, as previously announced.
On February 27, Vi announced that the company’s Board of Directors has approved the equity financing plan. The fund raise could involve convertible debentures, warrants, or other securities convertible into Equity Shares, Global Depository Receipts, American Depository Receipts or Foreign Currency Convertible Bonds.
Next Steps
The EGM was conducted on April 2 to approve the fund raise through audio-visual medium where shareholders could participate to pass the resolutions of the company. The specific resolutions passed during the meeting have not been disclosed yet.
Vi is also planning to engage with its lenders for tying-up the debt funding, which will follow the equity fund raise. The Company aims to raise around Rs. 45,000 crores through a combination of equity and debt.
