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Highlights
- Vodafone Idea Limited (VIL), the third-largest telecom entity in India, has been trying to raise funds from the investors and the banks.
- The telco needs fresh funds to be able to scale business and compete with Jio and Airtel.
- Jefferies, an investment banking group, recently shared in a note that Vi can fairly easily raise anothe Rs 16,000 crore in equity.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
Vodafone Idea Limited (VIL), the third-largest telecom entity in India, has been trying to raise funds from the investors and the banks. The telco needs fresh funds to be able to scale business and compete with Jio and Airtel. Jefferies, an investment banking group, recently shared in a note that Vi can fairly easily raise anothe Rs 16,000 crore in equity. The exact words from Jefferies was a little different. Here’s what the group said.
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“Given that VIL has raised equity of ₹44,700 crore since 2019, we believe raising another ₹16,000 crore equity amidst improving operating cashflows and continued govt. support may not be difficult,” said Jefferies.
Vodafone Idea needs to raise money, either through debt or through the equity. The government support is with Vi, primarily because the telecom sector cannot become a duopoly. Vi has been able to make a small comeback. The telco has been adding users for several months now, suggests TRAI (Telecom Regulatory Authority of India) report.
Vodafone Idea Plans to Raise Rs 25,000 Crore Through Debt
Vodafone Idea had earlier announced that it plans to raise around Rs 25,000 crore through debt in the coming years. This money would go towards fueling the capex (capital expenditure). Vi has set an ambitious target of rolling out 5G in every priority telecom circle and improving 4G coverage as fast as possible. The telco’s capex has been elevated so that it can compete with the likes of Jio and Airtel, who are way ahead when it comes to network availability.
