Vodafone Idea Boosts Capital with Rs 1,980 Crore Vodafone Group Deal

Vodafone Idea's board approved issuing up to 175.53 crore shares on a preferential basis to Vodafone Group entities, raising up to Rs 1,980 crore. The shares are priced at Rs 11.28 each. An extraordinary general meeting is set for January 7, 2025, for shareholder approval.

Vodafone Idea has announced plans to raise up to Rs 1,980 crore by issuing 175.53 crore shares on a preferential basis to its parent group, Vodafone Group entities. The telecom company's board approved this move on Monday, at an issue price of Rs 11.28 per share.

The strategic financial initiative aims to alleviate its debt burden, pegged at Rs 2.07 lakh crore as of March 2024. An extraordinary general meeting is scheduled for January 7, 2025, where shareholders will vote on the proposal. This step is expected to strengthen Vodafone Idea's financial position.

The telco, which recently secured a significant network equipment deal worth approximately USD 3.6 billion, looks to improve its competitive stance against rivals. Vodafone Idea's second-quarter revenues rose modestly, reflecting the impact of a recent tariff hike.

(With inputs from agencies.)