Vodafone Idea Fundraising Plans: What’s the Next Step

Reported by Tanay Singh Thakur May 27th, 2024 at 11:50 am

The telco's management said that they will further see if they can get more relief by offering more stake to the government against their statutory dues. Apart from this, Vi has approached the Supreme Court (SC) over miscalculation of the adjusted gross revenue (AGR) dues by the Department of Telecommunicatons (DoT).

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Highlights

Vodafone Idea's fundraising depends heavily on the new government that forms after the poll results are out.
Vi recently raised around Rs 20,000 crore in total in equity via FPO (follow-on public offer) and a promoter entity.
The telco also plans to raise another Rs 35,000 crore through debt.

vodafone idea fundraising plans whats the next

Vodafone Idea's fundraising depends heavily on the new government that forms after the poll results are out. Vi recently raised around Rs 20,000 crore in total in equity via FPO (follow-on public offer) and a promoter entity. The telco also plans to raise another Rs 35,000 crore through debt. However, that will not happen until the time investors and lenders get clarity on whether the government is ready to conver a part of Vi's dues into further equity. Note that this has already happened once when the government converted Vi's interest dues on the deferred payments and now the central government is the largest stakeholder in the telco.

The telco's management said that they will further see if they can get more relief by offering more stake to the government against their statutory dues. Apart from this, Vi has approached the Supreme Court (SC) over miscalculation of the adjusted gross revenue (AGR) dues by the Department of Telecommunicatons (DoT). If SC sides with Vi's appeal, then it will be a major relief for the telco and its investors.

This will clarity to the future investors and lenders to be able to make up their mind about giving money to Vodafone Idea Limited (VIL), said an ET report.

Banks and investors will further look deeply into the future plans of Vi. There's no doubt that there's a scope for Vi to make a healthy return in the next few years. However, for that to happen, the telco will have to run a tight ship with strong plans and effective and efficient execution.

Vi has been paying to the banks and the lenders in a timely manner. The telco has reduced a major part of its bank dues in the last year. This will further boost its credibility to be able to pay back the amount. However, banks are already exposed to Vi and will carefully think about giving their money to the telco, especially in a situation where the telco is trying hard to not lose its customers to the competiton.