Vodafone Idea eyes external funding sources, promoter infusion likely

26 Feb 2024 , 03:24 PM

According to news reports, Vodafone Idea’s fundraising plan is unlikely to include funding from either of the listed companies in the Aditya Birla Group, Grasim or Hindalco, CNBC-TV18 reported. The plan to raise funds will be discussed by the board of the company when it meets on Tuesday, February 27.

In accordance with reports, the promoter company, the Aditya Birla Group, is probably going to take part in the capital infusion by issuing preferred shares.

The financially troubled telecom company has been having trouble raising money for the past few years. According to reports, the management is preparing a sizable fund raise, which should be finished in the coming months.

The money generated will mostly go toward helping Vodafone Idea satisfy its capital needs for investments in 5G, network development, and government dues.

The investors are likely to feel more confident as a result of the promoter’s choice to inject funds. According to a source. Vodafone Idea announced on August 14 that, should the need arise, the promoter group will inject ₹2,000 Crore into the cellular operator. Later on, the management made it clear that the infusion of funds is probably going to be finished by the end of the December quarter.

Vodafone Idea’s shares are now 3.99% lower at ₹16.85, the lowest point of the day.

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