The promoters of Vodafone Idea Limited (VIL), the third-largest telco in the country, might get fresh capital from its promoters, including Vodafone Group Plc and the Aditya Birla Group (ABG). Both the promoters are committed to supporting Vodafone Idea (Vi) in strengthening its balance sheet, said Vodafone Group in a stock exchange filing on Wednesday.
Vodafone Group further said that both the promoters intend to contribute towards an issue of equity shares by Vi once the board of the telco decides the terms of such a capital raise.
Vodafone Group Looking to Sell Stake in Indus Towers
Vodafone Group is looking to sell its stake in the Indus Towers and use the proceeds to invest further in Vodafone Idea.
The Vodafone Group said that it plans to sell 2.4% of its stake in the Indus Towers via a block deal on Thursday. Further, the company is also planning to sell a 4.7% more stake in the company to one of its biggest shareholders.
The company added that the terms of such a sale are currently being discussed, and there’s no certainty that it will happen. But shall it happen, then Vodafone Group’s shareholding in Indus Towers would come down to 21% from the current 28.12%.
The Vodafone Group and Indus Towers have made changes to the security arrangement so that the proceeds from the sale can be directed towards Vi.
Vi hasn’t been able to raise capital for years now. Shall the sale really happen, the telco would get a chance to see some relief in its books. It would also strengthen its position for the upcoming 5G spectrum auctions. There’s no word from the Aditya Birla Group for now. But if Vodafone Group is investing in the telco, surely, the Aditya Birla Group might also have some plans for providing capital to the company. All of it should clear within a few weeks from now.