Aditya Birla Group is facilitating a fund-raising exercise at the promoter level for an equity infusion into Vodafone Idea (Vi) Ltd and is in conversations with global banks concerning raising term debt to subscribe to a preferential allotment of shares, as per reports. Following the Indian government’s decision to convert dues worth 16,133 crore rupees into equity, the funds will be utilized to partially fund the promoters’ planned 5,000 crore rupees equity infusion into Vi, as per two people directly involved in the matter.
Previously, promoters discussed raising 25,000 crore rupees but have only been able to invest 4,900 crore rupees, the majority of which has gone towards clearing some debts owed by tower company Indus Towers, as per the bankers. “Vi has many requirements. It has a particular requirement for capital. How much capital, and who will infuse? All those things are under discussion at this point, in time,” Ashwini Vaishnaw – the Telecom Minister, said in correspondence to Vodafone Group and Aditya Birla Groups asking for equity conversion from the government.
The quarterly results of Vodafone Idea came just days after the Union government announced its intention to convert the firm’s current debt into equity. The move is seen as a nudge to the besieged telecom operator to devise a fundraising strategy. “We continue to remain engaged with our lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising to make required investments for network expansion and 5G rollout,” Vi Chief Executive Akshaya Moondra said. Vi faced another loss in their third quarter. Vodafone Idea’s Q3 net loss widened to 7,990 crore rupees, while revenue was up 0.05% at 10,620 crore rupees.
(This article has been edited by Reeya Katakdaund)