Vodafone Idea (Vi) has reportedly received a $1 billion (Rs 8,300 crore) soft commitment from investors. The money will be raised against equity here and will be a part of the Rs 45,000 crore fundraising of the telco. Vi is trying to raise money through debt and equity instruments. According to a Zeebusiness report, the telco has been provided with a soft promise, which also includes money from the promoters. On the promoters' side of things, it is pretty evident that it will be only the Aditya Birla Group (ABG) that will be fueling money into the telco to increase its stake.
On Wednesday, Vi's share price has fallen 6.57% to Rs 12.80 (as I write this). Vodafone Idea wants to raise funds to be able to pay off statutory dues and also invest in expanding the reach of 4G. Further, Vi will also deploy 5G with the funds that it is trying to raise. Currently, it is the Indian government that owns the majority stake in the cash-strapped telco.
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But the government doesn't own the stake to make everyday decisions for the company. The stake was given to the government as a part of a relief measure to let go of interest accrued on the deferred statutory dues. Vodafone Idea has scheduled a shareholders' meeting on April 2, 2024, to vote on the board's decision to go ahead with the fundraising. The nod is inevitable from the shareholders.
Vi has Surrended Spectrum
Vodafone Idea has surrendered some spectrum in the West Bengal and UP East circles. According to a PTI report, the telco has surrendered partial spectrum in the 900 MHz and 1800 MHz bands that were due in 2024. While the exact number is not known, the report said that Vi has surrendered around 12 MHz in both bands.
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The telco has done this because its user needs are already met and this additional spectrum would have been a liability on its books.
