Good News for Vi, Birla Might Invest $150 Million This Month

The Vodafone Group might invest a similar amount into the company as a single investor or it might invest around $1 billion which will come from a consortium of investors.

Highlights

  • Vodafone Idea (Vi) might get $150 million in additional capital from Kumar Mangalam Birla.
  • There’s no urgent cash need for the telco to survive.
  • The ABG owns 27% stake in Vodafone Idea while the Vodafone Group owns a 44% stake in the company making it the larger promoter.

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Vodafone Idea

Vodafone Idea (Vi) might get $150 million in additional capital from Kumar Mangalam Birla, Chairman of the Aditya Birla Group (ABG). Vodafone Group Plc of the UK, which holds the largest promoter stake in the telco, might follow up with additional capital as well.

According to an ET Telecom report, Birla might invest this money out of his personal assets. People aware of the matter told the publication that the issue of fresh equity shares for the same is being considered.

Vodafone Group Along With Consortium of Investors Might Invest Close to $1 Billion

As per the report, the Vodafone Group might invest a similar amount into the company as a single investor, or it might invest around $1 billion, which will come from a consortium of investors. Vodafone Group might make its move in March 2022.

There’s no urgent cash need for the telco to survive as it has already opted for the payment moratorium of the spectrum and adjusted gross revenue (AGR) dues offered by the government. Instead, the investments from the promoters are required to instil confidence in the company for the outside investors.

As per the previous reports, the Vodafone Group Plc might sell a stake in the Indus Towers and use the proceeds to invest in Vodafone Idea. At present, the Vodafone group owns around Rs 23,000 crore worth of stake in Indus Towers.

The ABG owns a 27% stake in Vodafone Idea, while the Vodafone Group owns a 44% stake in the company, making it the larger promoter. Vodafone Idea would be very happy with all the developments that have come in the last month or so. The telco will come in a very good position after it receives the additional funds to invest in 5G networks and also expand 4G at the same time.

The extra cash would help the telco in investing more in the 5G spectrum auctions that will be held early next year.

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