Vodafone Idea to soon get Rs 20,000 crore in fresh funding, says CEO

Vodafone Idea to soon get Rs 20,000 crore in fresh funding, says CEO

Telecom operator Vodafone Idea is planning to raise Rs 20,000 crore, including Rs 10,000 crore in equity and remaining as fresh loans from banks, in fresh funding, CEO Ravinder Takkar told a newspaper.

India's third-largest telecom operator Vi is 'closer than ever' in raising fresh funds, Takkar told The Hindu Business Line.

“There was a list of 8-10 things in our investors’ minds, stating that if these criteria are fulfilled, we will put in the funds. We have never been closer to fulfilling this checklist, either it is already done or close to being done," Takkar told the newspaper.

The Vodafone Idea CEO said that talks with banks have become more willing to provide additional loans as the Department of Telecommunications returned Rs 16,000 crore worth of bank guarantees in April.

The telecom operator last year had approved a proposal to raise nearly Rs 25,000 crore of funds as Vodafone promoters have already infused Rs 4,500 crore of fresh equity.

Takkar said, “For all practical purposes, the composition of debt and fresh equity will be 50-50 for the remaining ₹20,000 crore,” The Hindu Business Line quoted.

Vodafone promoters currently hold nearly 75 per cent stake in the company. This will be diluted to around 50 per cent after the union government formalises its Rs 16,000-crore debt to equity deal.

If a new investor infuses Rs 10,000 crore worth of equity, it will acquire nearly 20 per cent of the stake in the company, as per the current market price of Vodafone Idea shares. This will also lead to further dilution of promoters Aditya Birla Group and Vodafone Plc's stakes in the company.

Amid plans to raise new funds, Takkar said that the company's plan to monetise Rs 7,600 crore worth of assets have currently taken a back seat.

“We currently have funding plans, we have government packages coming out…we don’t see asset sale to be the right thing to do at this point,” Takkar told the newspaper.