Mumbai: Vodafone Idea Ltd is poised to raise Rs 20,000 crore through a combination of equity and equity-linked instruments following approval from the company's board, media reports said.

In an official statement filed with the exchange, the company stated, "The Board has also authorised the management to appoint various intermediaries, including bankers and counsels to execute the fund raise."

To secure approval for the fundraising endeavour, the telecom firm intends to convene an extraordinary general meeting with its shareholders on April 2nd.

If shareholders grant approval, the company plans to conclude the equity fundraising in the forthcoming quarter.

Vodafone Idea has reaffirmed that the promoters are committed to participating in the equity raise, as previously pledged.

In addition to the fundraising initiative, Vodafone Idea is collaborating with its lenders to secure debt funding, which will complement the equity fundraising.

By combining these efforts, the financially challenged operator aims to accumulate approximately Rs 45,000 crore.

At present, Vodafone Idea's bank debt is relatively limited, amounting to less than Rs 4,500 crore.

"The equity and debt fund raising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion. These investments will enable the company to improve its competitive positioning and offer an even better customer experience," the company stated, explaining the purpose behind the fundraising.

As of the end of December, Vodafone Idea's total debt stood at Rs 2.15 lakh crore, including deferred spectrum payment obligations, AGR liabilities to the government, optionally convertible debentures, and dues to banks and financial institutions.

Despite encountering financial hurdles, Vodafone Idea has shown consistent growth in its 4G subscriber base and average revenue per user (ARPU) over the past 10 quarters.