On Wednesday, Vodafone Idea said that its board has approved a proposal for rights issue worth Rs 25,000 crore. In order to raise the money, the mobile service provider will issue fresh 2,000 crore shares at Rs 12.5 apiece to the existing shareholders.

Those who hold shares in Vodafone Idea as on the record date of 2 April will receive 87 equity shares for every 38 equity shares, the company said in a regulatory filing. The issue will open between 10 and 24 April.

The funds raised will be used to pay off the company's massive debt of more than Rs 1.23 lakh crore (close to $18 billion). According to the statement, Vodafone Group and Aditya Birla Group will be contributing Rs 11,000 crore and Rs 7,250 crore respectively, while the rest will be raised from the public.

Aditya Birla Group companies Grasim Industries Ltd and Hindalco Ltd hold 11.6 percent and 2.6 percent stake in Vodafone Idea.

This would be the second fund infusion by the promoters that raised nearly Rs 14,1240 crore to pare debt in order to go through the merger.

After the announcement, shares of Vodafone Idea fell as much as 7.6 percent to Rs 29.60 apiece on NSE.