The board of Vodafone Idea Ltd. is scheduled to meet June 22 to consider and approve a fundraising proposal worth up to Rs 500 crore.
The capital raise will be through an issuance of equity shares or convertible warrants on a preferential basis to one or more entities belonging to the UK-based Vodafone Group Plc–one of the promoters of the Indian telecom company, according to a exchange filing on Monday.
The move comes ahead of India’s 5G spectrum auction slated for July end.
Following the September reforms announced by the Centre, debt-ridden Vodafone Idea had opted for converting about Rs 16,000 crore interest dues liability payable to the government, into equity. That resulted in the government holding about 33% stake in the company.
Sources in the telecom department said Vodafone Idea’s equity conversion proposal was in the final stages, and requisite approvals for the same are expected in the next 7-10 days.