Shares of Vodafone Idea rose over 3% on April 4, following the announcement that the telecom operator’s board would consider issuing equity or convertible securities worth Rs 2,075 crore on a preferential basis to one or more promoter group entities. The board meeting is scheduled for April 6, 2024, to discuss this issuance.

In February, the board had approved raising Rs 20,000 crore through equity-linked instruments, and this proposal received shareholder approval on April 3. Vodafone Idea’s regulatory filing indicated strong support for the fundraising exercise, with 97.65% of public institutions and 98.62% of non-public institutions voting in favour.

The funds raised will support the expansion of the company’s 4G network and the rollout of 5G services, potentially enhancing its competitiveness and user experience. CNBC Awaaz reported that the company is looking to raise Rs 15,000-20,000 crore from a follow-on public offer (FPO), as approved by the board in February.

Securing this funding is crucial for Vodafone Idea to retain its customer base and strengthen its average revenue per user (ARPU).

However, at 2:00 pm, the shares of Vodafone Idea lost all its early gains and were trading 2.58% lower at Rs 13.20 per share.