Everything You Should Know About Vodafone-Idea Fund Raising Plans

Vi (Vodafone-Idea) is trying really hard to sustain itself in the Indian telecom industry. Notably, the telecom operator is looking for ways to raise funds opportunities and waiting for board approval to share its Rs. 25,000 crores fundraising plans with the telecom regulators.

"The Company keeps exploring various opportunities and options to raise funds within the authorizations given by the Board. As and when such proposals are considered by the Board of Directors of the company that warrants disclosures, the company complies with the disclosure obligations under the SEBI", said the telco in a regulatory filing.

Vodafone-Idea In Talks With Apollo Global

This clarification comes soon after it was reported that India's third-largest telecom operator Vodafone-Idea is in talks with Apollo Global Management firm. The company is likely to raise $3 billion (which is close to Rs. 22,400 crores) in the next three months to clear the spectrum and AGR dues.

"Vi is keen to secure its funding entirely through Apollo Global this time," said one of the executives. He added, "Vi is even open to offering a sizeable stake once there is agreement on valuations and terms."

There are chances that Apollo Global might impose some rigid norms, including corporate guarantees from promoters. This will allow Apollo Global to secure itself from any kind of default. However, industry sources said that promoters like Birla's and Vodafone UK are likely to oppose such guarantees.

Vodafone-Idea Total Dues

The loss-making telecom operator needs to clear Rs. 22,500 crores between 2021 and April 2022. This amount includes adjusted gross revenue debt and spectrum allocation dues. Notably, the cash balance of the company is stood at Rs. 350 crores by the end of the last financial year. The telecom operator posted a loss of Rs. 6,985.1 crores.

Meanwhile, the telecom operator likely to raise $ 1 billion from selling its You Broadband business, optic fiber unit, and data centers business.

It is worth noting that Vodafone-Idea is under a deep financial crisis, which is why it is looking for ways to raise money and that's why investors might force promoters to make some investment in the firm.