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The board of Vodafone Idea Ltd has approved the offer to raise up to Rs 25,000 crore through rights issue to existing equity shareholders of the Company. The largest telecom operator in the nation informed the stock exchange that the major part of the right issue will come from the promoters of the company.
Vodafone Idea Ltd did not clarify the purpose of the fundraising, although it is expected that the fund infusion will gear up the company for the ongoing telecom sector fight. The fund infusion is expected to be completed by March.
According to the company’s statement, Vodafone Group Plc will infuse up to Rs 11,000 crores whereas the Aditya Birla Group will contribute Rs 7,250 crores into the telecom operator. This will be the second fund infusion as earlier in 2018, as Vodafone and Aditya Birla Group infused close to Rs 14,140 crores at the time of the merger.
The company in its statement added, “For the purposes of giving effect to the Rights Issue, the Board has authorized the Capital Raising Committee to, inter-alia, decide the terms and conditions of the Rights Issue, including the instrument, issue price, rights entitlement ratio, record date, timing of the Rights Issue and other related matters.”
