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.
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.
