Vodafone Idea had also mentioned back then that it is engaged with its lenders to tie up debt funding, which will follow the equity fund raise. The company's bank debt is currently at ₹4,500 crore.
The potential funds raised by Vodafone Idea are expected to be used for deleveraging and kick-starting its 5G rollout, something that it has lagged behind its peers Reliance Jio and Bharti Airtel.
Likewise, shares of Indus Towers also surged as much as 8% on Monday ahead of Vodafone Idea's EGM.
Brokerage firm CLSA in a note mentioned that the de-rating for Indus Towers is now reversing and that the company getting payments from Vodafone Idea's fund raising could not only boost growth but also help settle past dues.
Vodafone Idea has already been making timely monthly payments to Indus Towers, according to various analyst reports.
The brokerage also mentioned that consolidation in the tower sector, with Brookfield acquiring ATC's India towers is also a positive.
In such a scenario, CLSA raised its price target on Indus Towers to ₹335 per share from ₹256 earlier. It maintained its "accumulate" rating on the stock.
Shares of Vodafone Idea ended 5% higher at ₹13.9, while those of Indus Towers ended with gains of 8.2% on Monday at ₹315.10.