Telecom operator Vodafone Idea Ltd (VIL) has proposed going for a fundraise of up to Rs 500 crore through the issuance of equity shares or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group.

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This proposal will be taken up at the upcoming board meeting of Vodafone Idea on June 22.

"... A meeting of the Board of Directors of the company is scheduled to be held on Wednesday, 22nd June 2022... to consider proposal for raising of funds aggregating up to Rs 500 crore, by way of issuance of equity shares and/or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group (one of the promoters of the company)," VIL said in a filing to BSE.

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The move comes as the Indian telecom market is poised for 5G spectrum auction and subsequent rollout of new-age offerings.

Following the September reforms announced by the Centre, debt-ridden Vodafone Idea had opted for converting about Rs 16,000-crore interest dues payable to the government into equity.

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This will result in the government holding about 33 percent stake in the company. Sources at the Department of Telecommunications (DoT) said VIL's equity conversion proposal is in the final stages, and the required approvals on the same are expected as early as 7-10 days.

(Edited by : Shoma Bhattacharjee)