Vodafone Idea Ltd. has secured an equity commitment of $1 billion, which roughly translates to Rs 8,300 crore, from investors, according to two persons familiar with the matter.
The cash-strapped telecom company has received a "soft commitment" from investors, one of the persons said on the condition of anonymity.
It includes the funds committed from the promoters as well. The company had said earlier that a promoter group has promised to infuse Rs 2,000 crore, if required. Its promoters, including Aditya Birla Group and Vodafone Group, hold 18.1% and 32.3% stakes, respectively.
The Union government, that owns nearly 33% stake in the company, is unlikely to participate in the fundraise, people in the know said.
Last month, Vodafone Idea had 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 company remains engaged with its lenders for tying-up the debt funding, which will follow the equity fund raise, it had said.
The mode of the fundraise is yet to be decided but may be through a preferential allotment, a follow-on public offer or even qualified institutional placement, the persons said.
The company may not have a single big backer, but multiple investors that have committed the amount, one of the persons said, pointing out that it is likely that these are foreign investors.
An email query sent to the company remains unanswered.
The telecom company plans to utilise its funding towards overdue payments to its vendors and 4G and 5G capital expenditure.
"Our growth capex in terms of expanding our 4G coverage and also rolling out 5G, which will go side by side, will happen based on the new funding being tied up," Akshaya Moondra, chief executive officer of the company, had said earlier.
The company will seek the shareholders' nod on April 2 and expects to complete the capital raise in the coming quarter.
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