Vodafone Idea Looking to Raise Up to Rs 16,000 Crore from SBI

Vodafone Idea is stuck because the government is not moving ahead with the equity conversion against the accrued interest dues on adjusted gross revenue (AGR) related dues. Vi has been not been able to raise funds because of this. The investors who want to give Vi their money can't do it until and unless they get some clarity on the government's role in the company. 

Highlights

  • Vodafone Idea (Vi), the third-largest telecom operator in India, is reportedly looking to raise up to Rs 16,000 crore from the State Bank of India (SBI).
  • This will be a Rs 16,000 crore loan, but the talks between both companies are at a very nascent stage as of now.
  • SBI has asked Vodafone Idea for clarification on when the government will convert its dues into equity in the company, along with some other business plans.

Follow Us

Vodafone Idea

Vodafone Idea (Vi), the third-largest telecom operator in India, is reportedly looking to raise up to Rs 16,000 crore from the State Bank of India (SBI). This will be a Rs 16,000 crore loan, but the talks between both companies are at a very nascent stage as of now. SBI has asked Vodafone Idea for clarification on when the government will convert its dues into equity in the company, along with some other business plans. Vi is the only private telecom operator that hasn't been able to launch 5G yet. This is because the telco is facing financial problems, and 5G is going to be super capex intensive. This fundraising via a loan from SBI would enable the telco to roll out 5G as well as pay off vendor dues, said an ET report.




Vodafone Idea Stuck Because of Govt Not Moving Ahead with Equity Conversion

Vodafone Idea is stuck because the government is not moving ahead with the equity conversion against the accrued interest dues on adjusted gross revenue (AGR) related dues. Vi has been not been able to raise funds because of this. The investors who want to give Vi their money can't do it until and unless they get some clarity on the government's role in the company.

A few weeks back, Vi's management had said that they had not received any sort of communication from the government over why the equity conversion process is stuck. The telco is now looking at SBI to get financial help. Earlier this year, Vodafone Idea had prepaid Rs 2700 crore to the SBI to win some confidence of the financial institutions.

No one can say right now whether the talks between both companies would result in successful fundraising for Vi. The telco desperately needs money to fuel its 4G capex and roll out 5G, which it has been preparing for years.

Reported By

Editor in Chief

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Recent Comments

Faraz :

That is good enough speed as per 4G standard, and you get cheaper plan. You could dial *#0011# and show…

BSNL 4G Services to be Rolled Out Soon in Indore:…

ansarshaikh :

Tested BSNL 4G, on Band 28 coverage is best, speed also 10mbps to 40mbps with 10mHz

BSNL 4G Services to be Rolled Out Soon in Indore:…

Faraz :

Yes, But some investment is better than none. Also as said by CEO, these funds and 18k crore FPO money…

Vodafone Idea Raises Rs 5400 Crore from Anchor Investors

Faraz :

IMO, Airtel only needs to buy sub GHz ( like B8/B5 ) to have atleast 10 MHz in that. &…

Airtel Hits 3 Million 5G Users Milestone in Mumbai

Faraz :

Yes I like your detailed reply. I have noticed same in Kolkata circle. Under many metro train station, Jio 4G…

Jio Leads Wireline Subscriber Addition in February 2024: TRAI

Load More
Subscribe
Notify of
14 Comments
newest
oldest most voted
Inline Feedbacks
View all comments