According to reports, the proposed capital infusion is aimed at strengthening lender and investor confidence. The company is also pursuing broader fundraising plans to support network expansion and operational requirements.

The development comes shortly after Birla returned as non-executive chairman of Vodafone Idea following recent relief on adjusted gross revenue (AGR) dues. The Department of Telecommunications (DoT) finalized the company’s AGR dues at Rs 64,046 crore as on 31 December 2025, significantly lower than the previously frozen amount of Rs 87,695 crore.

Market participants viewed Birla’s return and the expected equity infusion as a confidence-building measure to support ongoing lender negotiations. Reports indicated that the proposed capital raise may not be very large but could provide reassurance to banks and investors amid the company’s broader funding efforts.

Reports suggested that Vodafone Idea is estimated to require nearly Rs 95,000 crore, including around Rs 45,000 crore towards capital expenditure, apart from spectrum liabilities and bank debt obligations.

Separately, Vodafone Idea informed exchanges that its board will meet on 16 May 2026 to consider audited financial results for Q4 FY26 and FY26, and evaluate a proposal for raising funds on a preferential basis.

Last week, the telecom operator announced Birla’s appointment as non-executive chairman effective 5 May 2026, marking his return to the role after nearly five years. The company said the move reflects continued efforts to revive operations and strengthen its financial position.

Vodafone Idea is a partnership between the Aditya Birla Group and Vodafone Group. It is India’s third-largest telecom operator and provides wireless and broadband services under the Vi brand. The company holds mid-band 5G spectrum in 17 circles and mmWave spectrum in 16 circles, and is expanding 5G services across key markets.

The company’s consolidated net loss narrowed to Rs 5,286 crore in Q3 FY26 from Rs 6,609 crore in Q3 FY25. Revenue for the quarter rose 1.9% YoY to Rs 11,323 crore.