Vodafone Idea Ltd (VIL), on Wednesday, said its shareholders have approved a proposal to raise up to Rs 20,000 crore by issuance of securities.
An extraordinary general meeting (EGM) seeking shareholders' nod for raising capital was held on Tuesday.
VIL in a BSE filing informed about the voting results of the EGM, where 99.01 per cent of the overall votes were cast in favour of the resolution pertaining to "issuance of securities up to an aggregate amount of Rs 20,000 crore".
The approval comes at a time when the debt-laden firm is planning to raise Rs 45,000 crore through a mix of equity and debt with hopes of matching services offered by rivals Reliance Jio and Bharti Airtel, and arresting an alarming and prolonged subscriber churn.
The fundraise will arm VIL to improve competitive positioning in the Indian telecom market, where it trails Jio and Bharti Airtel, by a wide margin.
In February this year, the company's board had approved raising up to Rs 20,000 crore in equity from promoters and other investors by June, as it looked to shore up finances for the much-delayed 5G rollout and strengthening 4G services.
Vodafone Idea—where the government now also holds just over 33 per cent equity stake—has been fighting a desperate battle for survival. It has a debt of Rs 2.1 lakh crore, is reporting quarterly losses, and haemorrhaging subscribers month after month.
Trai's latest data showed that Vodafone Idea continued to bleed on the subscriber front.
VIL lost 15.2 lakh wireless subscribers, plunging its mobile subscriber base to 22.15 crore in January—its operational metrics standing out in sharp contrast to subscriber gains by Jio and Airtel.
