Vodafone Idea shares in focus as subsidiary raises Rs 3,300 crore via NCDs

Vodafone Idea Ltd (Vi) shares are in focus on Friday morning as the telecom operator announced Rs 3,300 crore in fresh fund raise through the issuance of unlisted, unrated, non-convertible debentures (NCDs) by its subsidiary Vodafone Idea Telecom Infrastructure.

Vodafone Idea said the fundraise saw strong interest exceeding the NCD issuance, from a diversified group of marquee investors, including large non-banking financial companies (NBFCs), foreign portfolio investors (FPIs) and alternative investment funds (AIFs).

It said proceeds from the issuance will be utilised by VITIL to repay its payment obligations to Vodafone Idea. This will enable Vi to bolster its capex and support business growth.

Speaking on the latest development, Abhijit Kishore, CEO, VIL said the fresh fundraise reinforces investor confidence in his company's strategy and long term vision. 

"This capital strengthens our momentum as we continue to scale our network and enhance services for our customers. Discussions relating to long-term debt raise to support capex are ongoing with banks," it said.

JM Financial Products Ltd. acted as the exclusive Debt Arranger in relation to this fundraise.

Following the development, Vodafone Idea shares were trading 1.16 per cent higher at Rs 11.48 apiece. The stock has soared 81.52 per cent in the past six months compared with 4.78 per cent rise for the BSE Telecommunication index during the same period.