It has been a confusing few days for the Vodafone Idea (Vi) fans. Multiple reports have come in hinting that Vodafone Idea will get cash from promoters, and then there are some that say it won’t. A few days back, a Business Standard report said that Vodafone Idea would not get any fresh capital from its foreign promoter Vodafone Group Plc. However, now, a new report from the Financial Express (FE) suggests that both Vodafone Group and the Aditya Birla Group (ABG) are ready to put equity in the company. The development was shared by the Department of Telecommunications (DoT) officials to FE. As per the publication, the promoters are looking to invest around Rs 10,000 crores in the company.
Vodafone Idea Will be In Much Better Position With Investment
Vodafone Idea will be in a much better position with the investment it gets from the promoters. There’s no confirmation whether this will happen. Regardless, it is great news for the company and its fans. If the telco manages to get the additional capital from the promoters, it can leverage it to grow networks since it doesn’t have any immediate debt to pay off.
With the relief package in the scene, it absolutely makes sense for the promoters to invest their capital and show confidence in the company. If the promoters give the telco money, it will give confidence to outside investors as well. This might mean that Vodafone Idea’s cash flow situation will improve very rapidly.
Ravinder Takkar has shown confidence in Vodafone Idea’s ability to raise funds. It is worth noting that Vi has been trying to raise Rs 25,000 crores since the approval it got from the company’s board last year. But the telco hasn’t gained the confidence of a single investor until now. But with the recent changes, all of this might change soon, and Vodafone Idea can get back on track very soon.
