Vodafone Idea to Raise Rs 4,730 Crore from Aditya Birla Group Entity via Warrant Issue

Vodafone Idea Seeks Shareholder Approval for Rs 4,730-Crore Fundraise

Vodafone Idea's board has approved a Rs 4,730-crore fundraise through the issuance of up to 430 crore warrants to Suryaja Investments Pte. Ltd., Singapore, an Aditya Birla Group entity and promoter group company. This move aims to strengthen the debt-laden telecom operator's financial position.

The company plans to issue warrants, each convertible into one equity share, at Rs 11 apiece on a preferential basis under SEBI's ICDR regulations. Subject to shareholder approval, the proposed issue will increase Suryaja Investments' stake in the company to as much as 3.82% post-conversion. Vodafone Idea has called an extraordinary general meeting on June 11 to seek shareholder approval for the preferential allotment.

Under the terms of the issue, 25% of the warrant exercise price will be paid upfront at the time of subscription, while the remaining 75% will be payable when the warrants are converted into equity shares. The warrants can be exercised in one or more tranches within 18 months from the date of allotment.

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The fundraising comes as Vodafone Idea continues efforts to shore up liquidity and support network expansion amid intense competition from larger rivals Reliance Jio and Bharti Airtel. The company has been engaging with lenders and investors to secure fresh capital as it looks to improve operational performance and expand 4G and 5G coverage.

The telco separately said the AGR matter development, coupled with improving operational performance, have strengthened its confidence in generating sufficient operational cash flows to meet obligations towards lenders, spectrum payments, and AGR dues over the next 12 months.

As of March 31, 2026, Vi's debt from banks and other lenders stood at Rs 4,127 crore, with Rs 726 crore due by March 2027. Deferred liabilities included Rs 1.27 lakh crore towards spectrum dues and Rs 25,254 crore towards AGR, with scheduled repayments of Rs 7,076 crore due by March 2027.

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Vodafone Idea also announced that Chief Enterprise Business Officer Arvind Nevatia has resigned to pursue external opportunities and will leave the company on or before July 28, 2026. The company has appointed telecom veteran M.P. Sunil Kumar as his successor.