The said funds would be raised by way of issue of equity shares or by way of issue of any instrument or security, including convertible debentures, warrants, or other securities convertible into equity shares, global depository receipts, American depository receipts or foreign currency convertible bonds or by way of a composite issue of non-convertible debentures with or without warrants entitling the warrant holder(s) to apply for Equity Shares or any combination thereof.

The fund raise would be done through a further public offer, private placement including preferential issue, qualified institutions placement, or through any other permissible mode or any combination thereof and in one or more tranches.

The board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise.

"The promoters will also participate in the proposed equity raise,” Vodafone Idea said in a statement.

In addition, the company remains actively engaged with its lenders for tying-up the debt funding, which will follow the equity fund raise. Through a combination of equity and debt, the company plans to raise around Rs 45,000 crore. The company’s bank debt currently stands at less than Rs. 4,500 crore.

The equity and debt fund raising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion. These investments will enable the company to improve its competitive positioning and offer an even better customer experience.

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst India's leading telecom service provider. The company provides pan India voice and data services across 2G, 3G and 4G platforms. The company holds large spectrum portfolio including mid band 5G spectrum in 17 circles and mmWave 5G spectrum in 16 circles.

The telecom service provider reported a consolidated net loss of Rs 6,985.9 crore in Q3 FY24 as compared with a net loss of Rs 7,990 crore in Q3 FY3. Revenue from operations increased marginally to Rs 10,673.1 crore in Q3 FY24 as against Rs 10,620.6 crore posted in Q3 FY23.

The scrip fell 1.51% to currently trade at Rs 15.63 on the BSE.

As per media reports, a prominent foreign brokerage continues to maintain its ‘reduce’ rating on the stock of Vodafone Idea, with a target price of Rs 6.5 apiece. The target price represents a downside of 58.41% from the scrip’s current market price.