Vodafone Idea Revival Plan To Get ₹14,000-Cr Jump Start

Debt-ridden telco Vodafone Idea plans to infuse ₹14,000 crore in equity to revive its business, with Aditya Birla Group and UK-based Vodafone Group Plc investing half of the amount.

What Happened? ABG and Vodafone Group will soon invest ₹2,000 crore as fresh equity and aim to raise an additional ₹7,000 crore either as direct equity or through convertible structures from external investors, Economic Times reported, citing sources. The promoters have already infused ₹5,000 crore since the government’s September 2021 telecom revival package.

Vodafone Idea has already reduced its bank debt from ₹40,000 crore to ₹12,000 crore, one of the sources told the business daily. The company is seeking additional borrowings of ₹25,000 crore to further support its operations.

See Also: Vodafone Writes Off Investment In Debt-Stricken Vodafone Idea: No More Losses To Be Recorded

It was previously reported that Aditya Birla was in discussions with foreign lenders to raise funds that it could infuse as promoter equity. Vodafone Group may also chip in for the fundraise, the sources said.

The Indian government recently approved the conversion of Vodafone Idea’s dues worth ₹16,133 crore into stock, with assurances from the promoters regarding additional equity infusion. Vodafone Idea has also approached domestic lenders to avail of ₹25,000 crore in rupee loans against the committed fresh equity.

According to analysts, Vodafone Idea is projected to face a cash crunch of ₹25,000 crore in FY26 and requires a significant increase in current tariffs to overcome the shortfall. The company lost 1.3 million 4G users in February, its biggest attrition in nearly two years.

Price Action: Vodafone Idea’s share price was up 5.2% at ₹8.10 at the start of trade on Wednesday.

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Posted In: EquitiesNewsFinancingMarketsAditya Birla GroupVodafoneVodafone Idea