Amid financial strain, Vodafone Idea has sealed a commitment for equity worth $1 billion (approximately Rs 8,300 crore) from investors.
According to informed sources, the telecom giant has garnered a "soft commitment" from investors, which encompasses contributions from promoters as well. The intended use of these funds includes clearing vendor dues and directing investments towards bolstering both 4G and 5G infrastructure.
The principal stakeholders of Vodafone Idea comprise the Aditya Birla Group and Vodafone Group, holding stakes of 18.1 percent and 32.3 percent, respectively. Notably, sources suggest that the government, possessing nearly 33 percent ownership in the telecom entity, is unlikely to partake in the fundraising initiative.
At present, Vodafone Idea refrained from issuing an immediate statement regarding this development. However, its stock concluded at Rs 13.65 on Tuesday, reflecting a 3.64 percent decline from Monday's closure at Rs 14.27.
In the preceding month, Vodafone Idea greenlit a fundraising endeavor amounting to Rs 45,000 crore through a combination of equity and debt.
The awaited infusion of capital into Vodafone Idea is pivotal, serving as a cornerstone to address immediate liquidity concerns and to fortify network expansion efforts, as highlighted in a recent report by Motilal Oswal Financial Services.
Despite these strides, Vodafone Idea still grapples with a debt burden of Rs 2.1 trillion, coupled with an annual installment obligation of Rs 430 billion from FY26 onwards. This poses a formidable challenge, especially juxtaposed against the FY24 EBITDA standing at Rs 84 billion.
Read also | Adani Group's Major Investment Shifts to Uttar Pradesh, Says Karan Adani
