Vodafone Idea board today approved issue of 20 billion equity shares with face value of Rs 10 each at a price of Rs 12.5 per share via a rights issue to the eligible shareholders.

Vodafone Idea will be using the proceedings of the rights issues for making substantial investment in 4G network expansion across the country. Vodafone Idea lags in terms of mobile data download speed as compared with Bharti Airtel and Reliance Jio.

The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible shareholders.

The rights issue of Vodafone Idea will open on April 10, 2019 and will close on April 24, 2019. Vodafone Group and Aditya Birla Group, the promoter shareholders, confirmed their participation of up to Rs. 110 billion and up to Rs 72.5 billion respectively.

Certain promoter shareholders have indicated that, in case the rights issue is undersubscribed, they reserve the right to subscribe to part or whole amount of the unsubscribed portion, subject to the applicable laws.

Balesh Sharma, CEO of Vodafone Idea, said: “The proceeds from the rights issue coupled with the monetisation of our stake in Indus will allow us to make the required investments in the business to achieve our strategic goals.”

Vodafone Idea has consolidated spectrum and the radio access network in 9 out of 22 service areas.

Vodafone Idea has implemented dynamic spectrum re-farming (DSR), on relevant 900 MHz sites, to offer 4G on 900 MHz on those sites.

Vodafone Idea has also re-farmed 2100 MHz spectrum from 3G to 4G usage on selected sites.

Vodafone Idea has reduced Capex by re-deployment of overlapping 3G and 4G equipment. Vodafone Idea has added data capacity through spectrum consolidation across circles and it will add more capacity with rollout of TDD sites.