Vodafone Idea Planning to Raise Rs 20,000 Crore in Fresh Funding

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Vodafone Idea Planning to Raise Rs 20,000 Crore in Fresh Funding
23 May 2022
min read

News Synopsis

Telecom operator Vodafone Idea plans to raise Rs 20,000 crore as new funding, along with Rs 10,000 crore of shares and the remaining loans from banks, CEO Ravinder Takkar said.

The CEO told the Hindu Business Line that the third largest telecom operator in India, Vi is closer than ever to raising fresh funds. He said, “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, whether it is already done or close to being done.”

Vodafone Idea's CEO said negotiations with banks were poised to provide additional loans as the Department of Telecommunications repaid a bank guarantee worth Rs.16,000 crore in April. Vodafone promoters currently hold nearly 75% of the company's stock. This will be diluted to about 50% after the union government officially signs a debt-equity deal of Rs 16,000 crore.

If a new investor brings in Rs 10,000 crore worth of shares, it will acquire almost 20% of the company's shares, according to the current market price of Vodafone Idea shares. This will further dilute the investment of the promoters Aditya Birla Group and Vodafone Plc.

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