The Vodafone Idea (Vi) board will meet on Wednesday to consider a plan to inject funds of Rs 500 crore from Vodafone Group Plc.
The infusion, the second in two months, comes ahead of the 5G spectrum auction which will see Indian telecoms firms battling for airwaves in multiple bands.
In a stock market notification, Vi said the board would meet on Wednesday to consider the proposal to raise funds totaling up to Rs 500 crore via shares or convertible warrants on a preferential basis to Vodafone Group entities.
In March, Vi approved a fundraising round of Rs 4,500 crore with two promoters contributing capital. While Vodafone Group invested around Rs 3,375 crore, Aditya Birla Group invested Rs 1,125 crore. However, the company has so far been unable to raise funds from an external investor.
During a recent interaction with Business Standard, the company’s CEO, Ravinder Takkar, said that the company is looking to expand its 4G network and improve its capacity through the injection of funds. The bulk of investment needs over the next three to four years will be in these two categories and will also include investments in 5G, Takkar said.
“We need Rs 25,000 crore additional investment which the board has approved. Our promoters have recently invested Rs 4,500 crore so we need about an additional Rs 20,000 crore which will be raised by combining debt and equity,” he said.