Vodafone Idea (Vi) is in discussions with lenders to raise approximately Rs 250 billion (USD 2.9 billion) in long-term loans to upgrade its network infrastructure and compete more effectively with Reliance Jio and Bharti Airtel, Bloomberg reported, citing sources familiar with the matter.
Also Read: Government Weighs Relief Options for Vodafone Idea Amid Survival Concerns
SBI to Lead Lending Consortium
The State Bank of India (SBI) is expected to lead a consortium of lenders for the funding, which will likely comprise a mix of domestic and foreign loans with a tenor of around 10 years. The move marks a renewed attempt by the telecom operator to secure financing after earlier plans were deferred due to concerns over its weak financials and substantial government dues, according to the report.
The fundraising efforts have gained momentum amid reports that the Indian government may offer relief to telecom firms on their outstanding statutory dues. Vodafone Idea has been steadily losing subscribers to competitors and is seeking capital to roll out faster networks and arrest the decline in its market share.
Also Read: Government Stake in Vodafone Idea Rises to 48.99 Percent After Fresh Equity Allotment
Government Stake and Fundraising
In April, the government increased its stake in Vodafone Idea to 48.99 percent by converting a portion of the company's spectrum dues into equity. Despite this, the company continues to face significant financial stress.
The company's board had in May approved plans to raise Rs 200 billion through a combination of equity and debt. The current discussions aim to supplement those efforts, with the loan process expected to conclude within a year.
Global banks are also expected to join the consortium, sources were quoted as saying in the report, adding that the fundraising drive would be concluded in a year.
Also Read: Communications Minister Rules Out AGR Relief, Says Vodafone Idea Must Stand on Its Own
No Official Relief Communication Yet
Meanwhile, in an exchange clarification sought on Tuesday, June 24, Vodafone Idea said that it had not received any official communication from the government regarding potential relief on dues.
"This is with reference to the news article appeared in Mainstream Media on 24 June 2025, titled "Vodafone Idea shares jump over 7 percent on reports of Govt. considering relief on Rs 84,000 crore dues" and the consequent material price movement in the Scrip of the Company today i.e. on 24 June 2025."
"We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful," Vodafone Idea clarified.
You can also join the TelecomTalk WhatsApp Community, TelecomTalk WhatsApp Channel or Telegram group Telecom Circle for updates and discussions.
