Vodafone Idea board to meet today and decide on ₹2,000 crore fundraise

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Paying off the debts will also likely help the telco get more debt-funding from lenders, according to a Moneycontrol report which cited analysts. This would help significantly boost its finances.

What about the remaining funds?

Vodafone Idea said it will use the remaining proceeds towards a new issue of equity shares after the board decides the terms of capital.

At the moment, the Vodafone Group holds a 22.56% stake in Vodafone Idea, with Aditya Birla Group’s stake being 14.76% and the government’s stake being 23.15%.

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All of this also comes at a time when Vodafone Idea declared that tariff hikes will happen in the near future, although this may not be for entry level plans, but for the higher consumption levels.

This also comes at a time when the centre had approved the waiving of a bank guarantee for telecom operators for spectrum purchased before 2022.

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This was a move which gave significant relief to Vodafone Idea which at the moment, owes the government more than ₹24,700 crore in bank guarantees, according to the report.