Vodafone Idea board to meet on Friday

Vodafone Idea (Vi), the third-largest telecom operator, notified the stock exchanges on Tuesday about a board meeting scheduled for July 22, 2022. Vi said that the objective of the meeting is to decide the nature of the instrument (equity shares or warrants) that will be issued to the promoter entity for raising funds. The promoter entity in concern here is Euro Pacific Securities Ltd is owned by the Vodafone Group UK, which is the largest promoter in Vodafone Idea (Vi).

In June 2022, Vodafone Idea informed that it is looking to raise Rs 436.21 crore from its promoter Vodafone Group. The company received the permission of the shareholders to go ahead with the fundraising on July 16, 2022. The telco hasn’t specified what it will do with the exact amount as it is not big enough to bring a positive impact on the business immediately.

Vodafone Idea has been trying to raise funds from external investors as well. But the telco has largely been unable to do that because of its financials, and now the government equity conversion is also pending. The telco expects to raise money post the conversion of equity for the government in the equity. In the near future, the Indian government will be the biggest shareholder in the company. NMK