NDTV Profit Exclusive: Vodafone Idea To Launch Rs 18,000-20,000 Crore FPO Next Week

Once the fund raise is concluded, the telecom operator intends to conduct an extensive restructuring of its operations. It also intends to raise tariffs over the current and the next financial year in a bid to improve revenue from operations, the company has promised prospective investors, the people quoted above said.

Moreover, Vodafone Idea is looking to move users from its 2G to 4G network. The company is also telling investors that it plans to raise tariffs by nearly 20-25% after the general elections and a second hike of a similar quantum is expected in the next year, according to the people mentioned above.

These moves will help the telecom operator boost its revenue from Rs 40,000 crore currently to nearly Rs 75,000 crore by March 2026.

Last week, the Vodafone Idea board cleared a proposal for a preferential allotment of shares worth Rs 2,075 crore. This will boost promoter Aditya Birla Group's stake to 13%, from 10.59% currently.

The telecom company had earlier approved a fundraise of Rs 45,000 crore via equity and debt. Of the total amount approved, Rs 20,000 crore will be via equity or equity-linked instruments. The government stake in the company will also decrease from 32.19% to 31%, following capital infusion by promoters.

Last month, 14,400 Optionally Convertible Debentures issued to ATC Telecom Infrastructure Pvt. worth Rs Rs 1,600 crore were converted into equity shares.