Vodafone Idea to raise ~Rs.14500 crore

News: Vodafone Idea will raise Rs.4,500 crore via a preferential share issue at Rs.13.3/share to its promoters, of which, the Vodafone Group’s share will be Rs.3,375 crore, which will be paid from funds raised by the partial sale of its stake in Indus Towers. The board also cleared raising another Rs.10,000 crore via mix of equity and debt instruments.

Views: The much needed fund raise, in our view, will mainly be used to repay Indus Tower dues and step up network capex run rate, which is dismally low at Rs.4600 crore annualised or ~25% of peers runrate, to arrest subscribers churn.

Impact: Positive