Vodafone idea approves a new fund raising plan. Hope it happens this time.

The Board has approved a new fund raising plan of Rs 45,000 cr.

• Rs 20,000 cr will be through a mix of equity and equity linked instruments. Balance Rs 25,000 cr will be through debt.
  • Promoters will also participate in the proposed equity raise. No further details are provided for now.
• The company will complete its equity fund raise after calling for a meeting of it’s shareholders on April 2, 2024, and getting a go-ahead from them.

Although a significant amount, the proposed fund raise is inadequate given the significant requirements in the core business + huge financial liabilities exceeding 2.5 lakh crore.

Besides, in what shape and format the proposed fund raise happens remains to be be seen. The company has been talking about fund raise for almost 3 years now without any significant success.

A positive change now though is a favorable outlook on the Indian telecom sector. Whether that helps Vodafone Idea‘s revival, remains to be seen.