Mumbai: Vodafone Idea announced it will consider raising up to Rs 2,000 crore through a preferential equity issuance to a promoter entity during a board meeting scheduled for Monday, December 9, media reports said.

The telecom company disclosed this plan in a stock exchange filing on the evening of December 4, according to a Moneycontrol report.

"...we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 9 December 2024, inter-alia, to consider proposal for raising of funds not exceeding Rs. 2,000 crore, by way of issuance of equity shares and / or convertible securities on a preferential basis to one or more entities belonging to Vodafone Group (one of the Promoters of the Company)," the notification stated.

The announcement came as Vodafone Plc announced to sell shares worth Rs 2,700 crore in a block trade on December 5, putting Vodafone Idea's stock in the spotlight.

Vodafone Idea reported a cash and bank balance of Rs 13,620 crore, which it claims is "more than sufficient" to cover its remaining capex plans of Rs 8,000 crore for the second half of FY25.

The company is "actively engaged" with lenders to secure debt funding for its long-term network expansion.

As of Q2FY25, its bank debt stood at Rs 3,270 crore, down from Rs 7,830 crore a year earlier, according to its earnings call.

Regarding tariffs, the company noted that increases are expected in the future, but there is "not too much of room" for hikes at the entry level, with more significant adjustments likely at higher consumption tiers.