Vodafone Idea (Vi), the third-largest telecom operator in the country, is struggling to make heavy investments in its 4G networks because of a lack of money. The telco’s board has decided to meet on March 3, 2022, to discuss potential fundraising activity.
In a listing on the stock exchange, the telco said that the board would decide to raise funds via equity or convertible debentures or non-convertible debentures or global depository receipts and more. Any way the telco feels it is fine to raise funds; it will do that.
Vodafone Idea Might be Expecting Equity Infusion from Vodafone UK
The Vodafone Group UK has already sold its 2.4% stake in Indus Towers through a block deal, the company announced on Friday. For the same, Vodafone UK got Rs 1443 crore. However, the telco is additionally looking to sell a 4.7% stake of Indus Towers to Bharti Airtel. This will allow it to raise another few thousand crores.
Vodafone Group UK is raising funds so that it can invest in Vi. Bharti Airtel on Friday said that it would be ready to acquire the 4.7% stake in Indus Towers that Vodafone UK is selling on a condition that the British telco promises to infuse the proceeds into Vodafone Idea (Vi) as fresh equity and also clears the outstanding dues of Vi related with the Indus Towers.
Vodafone Group should most likely accept the request made by Bharti Airtel as it was raising funds to help Vi only.
Thus, Vodafone Idea (Vi) would be expecting to raise fresh capital very soon from its current largest promoter — Vodafone Group UK. While this amount won’t help telco in a big manner, it would certainly give a cushion in the upcoming 5G spectrum auctions.
It has been years since Vodafone Idea (Vi) has been trying to raise capital. Thus, any amount of money that flows into the company, Vodafone Idea would gladly take it.