Vodafone Idea schedules board meeting to evaluate fundraising proposals

Vodafone Idea (VIL) has scheduled a board meeting for Friday, 30 May, to consider various fundraising proposals and to approve its financial results for the fourth quarter and the fiscal year ending 31 March 2025.

Amid ongoing concerns regarding its liquidity position, the financially distressed telecom operator is exploring several avenues to raise capital. In a regulatory filing with the BSE on Tuesday, the company stated that the board would examine and evaluate “any and all proposals” for fundraising, potentially in multiple tranches.

The options under consideration include a rights issue, a further public offering, private placements such as a qualified institutional placement (QIP) or preferential allotment, as well as debt instruments including bonds. The board may also explore other legally permissible means of raising funds.

In an exchange filing dated 27 May 2025, Vodafone Idea confirmed it would consider a broad range of instruments for fundraising. These may include equity shares, securities convertible into equity shares, Global Depository Receipts (GDRs), American Depository Receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures, warrants, and non-convertible debentures (NCDs), including NCDs with warrants, whether listed or unlisted.

Additionally, the board is expected discuss convening an Extraordinary General Meeting (EGM) to seek shareholder approval for the proposed capital-raising initiatives. It will also review and approve the audited financial statements for the fourth quarter and the full financial year 2024–2025.

Despite receiving some financial relief measures from the government, Vodafone Idea continues to face a severe liquidity crunch, raising concerns over its ability to sustain operations beyond the current financial year.