Vodafone Idea Limited (Vi) will raise Rs 4.36 billion from its UK-based promoter, Vodafone Group Plc. The funds raised will be used by Vi for network expansion as well as to prepare for the upcoming 5G spectrum auctions.

In a filing with the Bombay Stock Exchange, the telco informed that its board had approved the fund raising by way of issuance of either up to 427,656,421 equity shares with a face value of Rs 10 each, or up to 427,656,421 warrants convertible into equity shares to Euro Pacific Securities Limited, a Vodafone Group entity and promoter of the company, on a preferential basis.

If the funds are raised through the allotment of equity shares, the issue price will be Rs 10.20 per equity share, including a premium of Re 0.20 per share. Whereas, in the case of warrants, the issue price will be Rs 10.20 and 100 per cent of the issue price will be paid upfront at the time of subscription of warrants. Each warrant will be convertible into one equity share and the rights attached to warrants can be exercised at any time, within a period of 18 months from the date of allotment.

The board has also approved the convening of an extraordinary general meeting on July 15, 2022, to seek shareholders’ approval for the aforementioned preferential issue.