Shareholders approves Vodafone Idea’s Rs.20,000 crore Fundraising Plan:

Shareholders approves Vodafone Idea’s Rs.20,000 crore Fundraising Plan Vodafone Idea has received shareholders approval for a proposal to raise Rs.20,000 crore through a combination of equities and equity-linked securities, the telecom company said in a filing. "An Extraordinary General Meeting of Vodafone Idea Limited was held today, that is Tuesday, April 2, 2024, at 3.00 p.m. through Video Conferencing (VC) / Other Audio Visual Means (OAVM) in accordance with the relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India," according to the document. Vodafone Idea announced on February 27 that its board has approved financing up to Rs.20,000 crore in equity from promoters and other investors by June, with the goal of augmenting finances for the long-awaited 5G rollout and strengthening its 4G services. The debt-ridden corporation, in which the Indian government has just over 33% stock, plans to raise Rs 45,000 crore through a combination of equity and debt to compete with Jio and Bharti Airtel and potentially reduce user churn. The cash infusion will provide Vodafone Idea with resources to improve its competitive position in the telecom market, where it currently lags significantly behind larger rivals Reliance Jio and Bharti Airtel. Vodafone Idea is facing financial issues, including a Rs.2.1 trillion debt, quarterly losses, and continued customer attrition. Despite these challenges, Vodafone Idea's 4G customer base increased to 125.6 million from 121.6 million a year before. For the past 10 quarters, the company's 4G subscriber count and average revenue per user (ARPU) have grown consistently. Encouraged by improved operational indicators, the company chose to fundraise. The company's overall net loss for the quarter ended December was Rs.6,986 crore, down from Rs.7,990 crore a year ago and Rs.8,738 crore the preceding quarter. Vodafone Idea shares were trading at Rs.13.57 on the BSE at 3 p.m.