The board of Indian operator Vodafone Idea has approved plans to raise INR 200 billion (USD 2.4 billion) in fresh capital, followed by INR 250 billion new debt. The money will go towards expanding its 4G coverage, extending its 5G roll-out and improving services.
The operator’s main shareholders, which include the government of India and Vodafone Group, have already agreed to support the capital increase, and an EGM has been called for 02 April to vote on the plan. Vi said it expects to conduct the issue of shares or other equity-linked instruments in that quarter.
After the share issue, it will work on closing the debt deal, with talks already underway with its lenders. Its current bank debt is at less than INR 45 billion. Vi expects its improved performance over the past two years should help attract better borrowing terms. 4G subscriber numbers and ARPU have increased for ten consecutive quarters, despite its limited ability to invest, the operator noted.
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