Vodafone Idea Limited (VIL) is looking to raise more funds after raising about Rs 24000 crore from equity. The telecom operator has plans to raise about Rs 35,000 crore more to fund its capex (capital expenditure) and help with short-term dues payments. The company has reportedly reached out to new lenders which include non-banking finance companies (NBFCs). The talks with the SBI (State Bank of India) led consortium is still ongoing, according to a MoneyControl report.
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The report added that Vodafone Idea also recently concluded the techno-economic valuation (TEV). The conclusion of TEV is a major milestone in being able to raise funds. Banks had requested a top consultancy to measure the creditworthiness of Vodafone Idea Limited and the amount of loans that the telecom operator could provide.
Vodafone Idea's management has previously said that they are in talks with various banks for raising funds via debt. The recent equity fundraising will enable the company to modernise the network and spread 4G. However, there is a need for more funds in the short-to-medium term for the telco to make a comeback.
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One thing is sure from the government's standpoint. It is not looking to interfere in the company's decisions for running the business. Nor does the government want to divest its stake in the telco anytime soon. The lenders will be extra careful with providing funds to Vi as the telco has been losing revenue market share quite rapidly to its competitors. Along with this, Vi's plans to roll out 5G are still a little quiet at the moment. The telco's management had said that they will look to launch 5G in the winter of 2024. The telco's share price has stabilised on Friday after crashing about 17% in the last month.
