Vodafone Idea is in advanced talks with three investors to raise financing for the debt laden company through equity infusion. Vodafone Idea CEO, Akshay Moondra, said during the investor call for Q4FY23 results on Friday.Â
Responding to analyst queries around the exact timeline for the infusion of funds into the telecom company, and the subsequent commencement of capital expenditure on 5G services – Vi executives noted that after the government signed off on converting Vodafone Idea’s debt to equity, talks with promoters, banks and investors have gained momentum.
Moondra indicated that promoters are willing to infuse additional equity into the telco, Kumar Mangalam Birla who was the former chairman of Vodafone Idea’s board, has joined the board again. The UK-based Vodafone Group is also willing to infuse equity in the future, as per Moondra’s comments.Â
businessline had already reported that Vodafone Idea had renewed its talks with banks for further loans to finance 4G and 5G capex. These talks had initially been suspended earlier this year as the government delayed converting Vodafone Idea’s debt to equity. With the government’s announcement in February regarding equity conversion, these talks have been renewed.Â
Most importantly Vodafone Idea is in advanced talks with three investors who could infuse equity into the company- which is a new development, as the company had been largely tightlipped about a potential new investor into the company for the last two years.
In fundraising mode
Vodafone Idea has been unsuccessfully trying to raise funds for more than two years. Top executives at the company have routinely notified the press and analysts that they target to raise ₹20,000 crore as a mixture of debt and equity. With the 5G rollout on the horizon, experts contend that Vodafone Idea needs even more funds.
Vi will start investing into 5G services, if it is able to raise additional funds, the company has already shared its 5GÂ investment plan with banks to raise debt.Â
Published on May 26, 2023
