Vodafone Idea plans to raise $750 million via convertible debentures

Promoters to dilute stake post conversion

Vodafone Idea Ltd (VIL), a joint venture between Vodafone Group Plc of the UK and the Aditya Birla group, is planning to raise up to $750 million (about Rs 5,500 crore) via convertible bonds to repay its adjusted gross revenue (AGR) dues and spectrum fees to the government. Following this, both the promoters will significantly dilute their stake in the company.

According to a banker close to the development, VIL, the third-largest telecom operator in the country, has initiated talks with investors to raise the funds, and the bonds will be launched anytime in the next quarter.

Vodafone Group holds 44.39 per