Vodafone Idea Gets $1 Billion Soft Commitment from Investors: Report

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.

• Make Telecom Talk My Trusted Source
• 
• 

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.

Read More – Vodafone Idea Only Added 4 Million 4G Users in Four Quarters

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.