Vodafone Idea mulls over raising funds by preferential issue on April 6

The board gave its permission in February for Vodafone Idea’s plan to raise between Rs 15 and Rs 20,000 crore through a follow-on issue. The company wants to use the money to bolster its 4G services and finance the much-delayed rollout of 5G technology.

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The announcement comes only hours after the telecom business said earlier today that the shareholders had approved a fund increase of Rs 20,000 crore, which may open up new revenue streams for global telecom equipment suppliers like Nokia and Ericsson.

The telecom mentioned in a regulatory filing, “…a meeting of the Board of Directors of the Company is scheduled to be held on Saturday, 6th April 2024, inter-alia, to consider proposal for issuance of Equity Shares and / or Convertible Securities on a preferential basis.”

On March 1, news agency Moneycontrol revealed that Vodafone Idea was in discussions with investment banks to come up with a successful fund-raising plan that would maximize a number of options, such as a rights issue, preferential allotment, or a follow-on public offering.

The telecom giant will be able to bring out 5G services and grow its 4G network thanks to the funding.

On April 3, Vodafone Idea shares closed 0.82 percent higher at Rs 13.55 a share on the BSE.

According to sources cited by CNBC-Awaaz, the Vodafone Idea capital drive may actually happen, with an FPO scheduled to open in a few weeks or days.

The board gave its permission in February for Vodafone Idea’s plan to raise between Rs 15 and Rs 20,000 crore through a follow-on issue. The company wants to use the money to bolster its 4G services and finance the much-delayed rollout of 5G technology.

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