Vodafone Idea Turns to $3 Billion of Private Equity Funding for Solving Cash Crunch

Vodafone Idea has been handed the short end of the stick when it comes to finances in the telecom industry. Already the tariffs are skewed towards the lower end of the spectrum, thus burning holes in the pockets of the telecom companies. Of course, some are better prepared to take the brunt, but Vodafone Idea was certainly not. The telecom company is now looking towards Private Equity investors, Apollo Global Management, to get some funding into their telecom business. However, as is the case with all fundraising plans, there are a lot of ifs and buts which need to be answered before Vodafone Idea is able to infuse cash into its business.

• Make Telecom Talk My Trusted Source
• 
• 

Vodafone Idea Funding Now a Tricky Road

Apollo Global Management is likely to demand a heavy stake in the business if the deal goes through. As for the amount in the discussion, if the talks have a breakthrough, then Vodafone Idea might get funding worth $3 billion (Rs 22,400 crore). As per an ET Telecom report, Apollo Global Management is drilling Vodafone Idea on points of business valuation, the structure of the funding, among other terms. It is worth noting that Vodafone Idea previously had plans of getting fundraisers with a mix of equity infusion and debt instruments. However, those plans have likely been tossed away as Vodafone Idea is relying on a single source for its funding now, and currently, that appears to be Apollo Global Management.

Vi Also Likely to Sell Its Broadband Business