Vodafone Idea Could Raise More Money through Vendors by Equity: Report

In 2024, Vi has already successfully raised around Rs 24,000 crore through equity dilution. A majority of the equity money raised will go towards the capex (capital expenditure) activities including expanding 4G coverage and capacity along with rolling out 5G in the future.

Highlights

  • Vodafone Idea (Vi), the third-largest telecom operator in the country, could raise more money through equity sale.
  • The telco recently issued preferential equity shares to Nokia and Ericsson (two major telecom gear vendors) and raised a cumulative Rs 2,458 crore.
  • From the money raised, Vi will pay Rs 1,140 crore to Nokia and Rs 703.5 crore to Ericsson.

Follow Us

vodafone idea could raise more money through

Vodafone Idea (Vi), the third-largest telecom operator in the country, could raise more money through equity sale. The telco recently issued preferential equity shares to Nokia and Ericsson (two major telecom gear vendors) and raised a cumulative Rs 2,458 crore. From the money raised, Vi will pay Rs 1,140 crore to Nokia and Rs 703.5 crore to Ericsson. Vodafone Idea Limited (VIL) owes money to Nokia and Ericsson, and this fundraise, will mostly go towards clearing that debt. However, the remaining amount, Rs 614.5 crore will be used for general corporate purposes by the year-end, said an ET report.




The report also mentioned that further dilution of equity is possible. The telco may seek to raise more money through the same vendors against equity in the future, said JP Morgan in a note.

Read More - Vodafone Idea Approves Rs 2,458 Crore Preferential Allotment to Nokia and Ericsson

In 2024, Vi has already successfully raised around Rs 24,000 crore through equity dilution. A majority of the equity money raised will go towards the capex (capital expenditure) activities including expanding 4G coverage and capacity along with rolling out 5G in the future. VIL confirmed that it is looking to deploy 5G in late 2024.

Read More - Vodafone Idea Brings New Rs 248 Plan with OTT Benefits: Get Details

For that, it will require the help of Nokia and Ericsson. Neither of the vendors would want to expose themselves further to VIL by giving more products on credit. Thus, Vi is raising money through them against equity and paying back dues. The telco also aims to raise another Rs 45,000 crore through debt in the next few years. VIL has been clearing bank debts on a timely basis and the recent fundraising may instill some confidence in the minds of the lenders.

There may also be a scenario where the government acquires more equity in the telco against reducing the deferred dues.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

Recent Comments

jayanthkillam :

Have you checked Rs.91 Plan on bsnl.

Is BSNL Rs 107 Plan the Best Value Short-Term Prepaid…

Samrat Gupta :

Well if you consider Jio's 2gb monthly plan then its more or less same. I was comparing the plans as…

Jio, Airtel, Vi Minimum Recharge to Keep Validity after Tariff…

TheAndroidFreak :

Let BSNL first focus on coverage in rest of India. Mumbai and Delhi have best coverage from Jio+Vi/Jio+Airtel on respective…

Is BSNL Rs 107 Plan the Best Value Short-Term Prepaid…

Faraz :

Can't find any of the 3 plan in MyJio.. Is it visible for only those who have 1.5 GB per…

Breaking: Jio Launches 5G Data Booster Plans, Starts at Rs…

Shivraj Roy :

There was big mtnl office in Andheri West Mumbai They demolished it a few months ago Idk what’s with that

BSNL will Handle MTNL Operations, but No Merger Yet: Report

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments