The board of cashstrapped Vodafone Idea on Wednesday approved the plan to raise Rs 436 crore from a Vodafone Group entity (Euro Pacific Securities), via issuance of up to 42.76 lakh equity shares or warrants convertible into equity shares.

In case the funds are raised through the allotment of equity shares, the issue price will be Rs 10.20 per equity share (including a premium of Rs 0.20 per equity share).

In the case of warrants, the issue price will be Rs 10.20, and 100 per cent of the issue price will be paid upfront at the time of subscription to the warrants.

Each warrant would be convertible into 1 equity share and the rights attached to warrants can be exercised at any time, within a period of 18 months from the date of allotment.

The board also approved the convening of an extraordinary general meeting on July 15, to seek approval of shareholders for the aforesaid preferential Issue.

Vodafone Idea, which returned from the brink of bankruptcy last year following government aid, has reportedly been on the hunt for investors to raise fresh capital to pay down its debt and invest in its network.

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