Vodafone Idea approves Rs 20,000 cr fundraise plans in a fight for survival
Instruments on the table include equity shares, convertible bonds, Global Depository Receipts (GDRs), American Depository Receipts (ADRs), and non-convertible debentures with warrants, among others.
Synopsis Vodafone Idea's board has approved raising up to Rs 20,000 crore through equity and debt to strengthen its financial position. The capital infusion aims to support operations, reduce liabilities, and facilitate network expansion, including the 5G rollout. Despite a reduced net loss year-over-year, subscriber churn continues to be a challenge for the telecom operator. Vodafone Idea, with the aim of bolstering its finances, has approved a fundraise of up to Rs 20,000 crore through a mix of equity and debt instruments. The move aims to provide the struggling telecom operator with much-needed capital to support its operations, reduce liabilities, and expand network capabilities.
ADVERTISEMENT 'The Board of Directors of the Company at their meeting held today i.e. on 30 May 2025, inter-alia, have approved the following: by way of issue of equity shares or by way of issue of any other eligible instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, non-convertible securities and/or composite issue of non-convertible debentures along with warrants, which may or may not be listed upto an aggregate amount of Rs. 20,000 crores,' the company said in its exchange filing.
The fundraising could be carried out in one or more tranches via public offerings, private placements, or a combination of both.
Instruments on the table include equity shares, convertible bonds, Global Depository Receipts (GDRs), American Depository Receipts (ADRs), and non-convertible debentures with warrants, among others.The board has empowered its Capital Raising Committee to evaluate and decide the most suitable route for the capital infusion.The decision comes at a time when the telco continues to face intense competition from peers Jio and Airtel and is in urgent need of capital to invest in its 5G rollout and network expansion plans.
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Also read: Ola Electric skids as widening losses dent sentiment
The debt-ridden telco reported a consolidated net loss of Rs 7,166.1 crore in the fourth quarter of FY25, which is 6.6% lower from a net loss of Rs 7,674.59 crore reported in the same quarter last year.
ADVERTISEMENT Meanwhile, the company's revenue from operations grew 3.8% YoY to Rs 11,013.5 crore for the said quarter, up from Rs 10,606.8 crore in the year-ago period.However, sequentially, the company's net loss has widened from Rs 6,609 crore in Q3FY25.
ADVERTISEMENT Amid increasing competition, Vodafone Idea continued to lose its subscribers.The JV of UK's Vodafone Group Plc and India's Aditya Birla Group was unable to arrest subscriber churn even as it commenced pan-India 5G rollouts this quarter, covering major markets like Mumbai and Delhi. In December, the subscriber base had fallen below the 200 million mark for the first time since its merger in 2019.
ADVERTISEMENT In March, it further declined to 198.2 million. SR Batliboy and Associates, the auditors of Vi, cautioned that the operator's financial performance has impacted its ability to generate cash flows that it needs to settle/refinance its liabilities as they fall due.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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