Vodafone Idea Reaches Out to Banks for Rs 7000 Crore Loan to Pay Indus Towers

Vodafone Idea has asked another lender to factor in Rs 15,000 crore bank guarantees and issue fresh loans. Vi had promised Indus Towers that it would pay 100% of its current dues from January. The telco had also said that it would clear all its dues to Indus Towers remaining at the end of December 31, 2022, in the first seven months of 2023.

Highlights

  • Vi wants to raise Rs 7000 crore loan from lenders.
  • The amount will be largely used to clear dues of Indus Towers.
  • Vi wants funding fast.

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Vodafone Idea

Vodafone Idea (Vi) has reportedly reached out to several banks for raising a sum of Rs 7000 crore in loans. Banks such as the State Bank of India, Punjab National Bank, IDFC Bank, and HDFC Bank have been contacted by the telco. The development has been shared by ET Telecom. The report from the publication said that most of the loan amount is meant for clearing the dues of Indus Towers. Lenders would be hesitant to give money until the time a clarity about government's stake in the company arrives. Further, even the lenders want to know if the promoters are infusing meaningful capital into the company.

Vodafone Idea asks for Factoring in Rs 15000 Crore Bank Guarantees

As per the report, Vodafone Idea has asked another lender to factor in Rs 15,000 crore bank guarantees and issue fresh loans. Vi had promised Indus Towers that it would pay 100% of its current dues from January. The telco had also said that it would clear all its dues to Indus Towers remaining at the end of December 31, 2022, in the first seven months of 2023.

The monthly dues of Vodafone Idea to Indus Towers come at Rs 250 to Rs 300 crore. The total dues that Vi has to pay to Indus Towers has mounted to Rs 7500 crore. What's worth nothing is that Indus Towers had given a very strong warning to Vi that if the telco doesn't clear its dues, it would lose access to its towers.

According to another report, Vi's promoters are ready to infuse capital, but it's not a meaningful amount. The promoters want to infuse up to Rs 3000 to Rs 4000 crore only. However, Vi needs somewhere around Rs 40000 to Rs 45000 crore for sustaining.

Until the time Vi gets funding from the promoters, the external investors and the Indian government won't do much for the telco.

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