Vodafone Idea (Vi) is all set to raise Rs 436 crore from its current biggest promoter – Vodafone Group UK. Something has changed for the telco in the past year. With the aid package from the government, Vodafone Idea is in a much better position as a going concern than around the same time last year. The telco also had a hard time raising additional funds from promoters due to its poor business outlook. But now the telco is planning to raise Rs 436 crore from Vodafone UK.
Vodafone Ideas shareholders have approved the fundraising. The telco held an Extraordinary General Meeting (EGM) on July 15, 2022 at 12:30 PM. Shareholders or shareholders of the company were given an opportunity to vote electronically at the EGM.
Vodafone Idea shareholders in line with Telco .’s plans
In a submission to the exchanges, Vi said 99.94% of votes were in favor of the move to raise Rs 436 crore from Vodafone Group UK while only 0.6% were against it. This means that the telco can now go ahead and raise money from Vodafone.
When exactly will it happen is something that is in the dark right now! Vodafone Group UK has not yet released a statement and will likely only be silent. While the said amount that Vi wants to raise from the Vodafone Group is unlikely to have a major impact on the business, it is still Rs 436 crore more than zero. For Vi, in this case, something is better than nothing.
The telco is struggling to expand its shrinking subscriber base. While Vi has performed well in some quarters, the same needs to be replicated as soon as possible in every part of the country to make an impact. Vodafone Idea needs more money in its books to fuel capex and to invest in the spectrum during the 5G spectrum auction.
