Vodafone Idea in Slightly Better Position for 5G Spectrum Auctions

Vodafone Idea (Vi) is in a slightly better position than it was two weeks back when we talk about the upcoming 5G spectrum auctions. The spectrum auctions are going to burn the telcos’ pockets with thousands of crores flowing towards the government. Reliance Jio and Bharti Airtel look solid with good profits in the book and fresh investments onboard. Vodafone Idea (Vi) was struggling in this regard until a few weeks back with no new investors interested to infuse capital in the company.

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However, things have slightly changed for the company. A couple of days back, Vodafone Group UK said that it is selling a small stake in the Indus Towers and will use the proceeds to infuse fresh capital into Vodafone Idea.

Along with this, Bharti Airtel accepted to purchase a 4.7% stake of Indus Towers owned by the Vodafone Group but on a condition that all the proceeds should go towards fresh capital infusion in Vodafone Idea (Vi) and its outstanding dues with tower company. The Vodafone Group is yet to reply to Airtel on this, but most likely, the sale should happen as Vodafone Group was looking to sell the stake to raise capital for Vi only.

Vodafone Idea Board Approved Money Raise

The telco is going to go ahead with a fundraising activity, subject to the approval of shareholders. Vodafone Group and the Aditya Birla Group’s subsidiary companies are together going to purchase up to 3,38,34,58,645 shares of Vodafone Idea at Rs 13.30 (per equity share). This will bring Vi about Rs 4500 crore. It will be a preferential issue made by the company to the subsidiaries of its promoters.