Vodafone India Limited (Vi) is looking at raising up to Rs 5 billion from UK’s Vodafone Group Plc., the largest promoter of the company.
In a filing with the Bombay Stock Exchange, the telco has scheduled a board meeting on June 22, 2022. As per the filing, the purpose of the meeting is to consider a proposal for raising funds aggregating up to Rs 5 billion through the issuance of equity shares and/or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group.
Earlier this year, Vodafone Group had sold 7.1 per cent stake in Indus Towers Limited, of which 2.4 per cent was sold through a block deal and the remaining 4.7 per cent to Bharti Airtel, raising a sum of approximately Rs 38.31 billion. Of this, Rs 33.75 billion was pumped into its debt-ridden Indian subsidiary.
The fresh fund infusion from Vodafone Group is expected to come from the balance of proceeds of its Indus Towers stake.
The funds raised will be used by Vi to invest in its network as well as participate in the upcoming 5G spectrum auctions in late July 2022.
