Telecom operator Vodafone Idea on Thursday announced the fundraise of ₹3,300 crore through issuance of non-convertible debentures (NCDs) issued by its subsidiary Vodafone Idea Telecom Infrastructure Limited (VITIL).

The fundraise saw a mix of marquee investors including large non-banking financial corporations (NBFCs), foreign portfolio investors (FPIs), alternative investment funds (AIFs), the company said in an exchange filing.

The proceeds from this issuance will be utilised by VITIL to repay its payment obligations to Vi, the statement added.

"This fresh fundraise reinforces investor confidence in our strategy and long term vision. The capital strengthens our momentum as we continue to scale our network and enhance services for our customers. Discussions relating to long-term debt raise to support capex are ongoing with banks," Abhijit Kishore, CEO, Vodafone Idea said.

JM Financial Products Ltd acted as the exclusive Debt Arranger in relation to this fundraise.

In related news, Finnish mobile phone manufacturer HMD Global is partnering with Vodafone Idea to increase the adoption of 2G feature phones, backed by carrier benefits, according to a report by ETTelecom. HMD Global also leverages Bharat Sanchar Nigam Limited's (BSNL) distribution network to sell its devices in rural regions and villages.

According to estimates, there are about 250-300 million keypad phone users in India.

"We've strong tie-ups with the likes of Vodafone Idea as well, as we move forward in the low-cost 2G feature phone space. While we at HMD have addressed the price entry barrier as far as the device is concerned, the cost can still be prohibitive for Indian consumers in the rural market," said Ravi Kumar, vice president & CEO, HMD India and APAC, as per the report.

The shares of Vodafone Idea ended Thursday 1.8% higher at ₹11.33 apiece on the National Stock Exchange. The stock has risen almost 73% in the past six months while the benchmark Nifty 50 index rose nearly 4% during the period. Vodafone Idea received a major relief as the Supreme Court recently allowed the government to potentially reconsider and reassess the adjusted gross revenue (AGR) dues of the telecom operator.