Vodafone Idea (Vi) is unlikely to raise any funds for the remainder of FY24. The December quarter is almost over and it was one that Vi investors were looking forward to. This is because Akshaya Moondra, CEO of Vi, said during the earnings call that Vi is expecting to conclude fundraising through potential investors by the December quarter. However, the talks with the US-based digital infra firm have gone south. Vi is now looking to raise funds by selling its fiber assets.
Read More - Vi Looking to Raise Up to Rs 12000 Crore via Selling Fibre Assets
According to a report by the Mint, Vi's Rs 20,000 crore fundraising is going to be delayed, and may not even concluded in the coming March quarter. Thus, the telco's investing capacity on its networks will be limited, and the 5G launch will also likely be delayed. It is hard for Vi to raise funds because of its total debt (over Rs 2 lakh crore) and very little confidence shown by the promoters.
The fastest that Vi can raise funds now is by selling its fiber assets. However, that would also only happen if the company and the buyer it is looking for can sit on the same page about the valuation. The telco's fiber assets are spread throughout the country and could be a decent deal as the demand for home broadband is only going to go up from here.
Read More - Vi Prepaid Plans Under Rs 200
Vodafone Idea's 4G coverage is poorer compared to Airtel and Jio. The telco can't resolve it unless it can raise funds. The short-term liabilities coupled with the expenses aren't allowing Vi to utilise its revenues for reinvestment into networks. Any further delay in the launch of 5G by Vi will only cause more hurt to its depleting subscriber base. To recall, Vi's active subscriber base has fallen below the 200 million mark.
