With the aim to raise capital for the heavily indebted company through an equity infusion, Vodafone Idea is in advanced talks with three investors. Akshay Moondra, CEO of Vodafone Idea, made this statement on Friday during the investor call for Q4FY23 results.
In response to questions from analysts about the precise timing of the financial infusion into the telecom company and the start of capital spending on 5G services, Vi executives noted that discussions with promoters, banks, and investors have picked up steam since the government approved the conversion of Vodafone Idea’s debt to equity.
Additionally, According to Moondra, Kumar Mangalam Birla, who previously served as the board chairman of Vodafone Idea, has rejoined the board. He also indicated that the promoters are willing to inject more equity into the telco. As per Moondra’s remarks, the UK-based Vodafone Group is also ready to inject equity in the future.
As per media reports, Vodafone Idea had resumed discussions with banks about additional loans to pay for 4G and 5G capital expenditures. These discussions were initially put on hold earlier this year while the government took its time converting the debt of Vodafone Idea to equity. These discussions have resumed as a result of the government’s announcement in February regarding equity conversion.
The company had been largely mum about a potential new investor into the company for the previous two years, so it is a new development that Vodafone Idea is in advanced talks with three investors who could infuse equity into the company.
Over the past two years, Vodafone Idea has made unsuccessful attempts to raise money. Top company executives regularly inform the media and analysts that they aim to raise 20,000 crores through a combination of debt and equity. In light of the impending 5G rollout, experts claim Vodafone Idea needs even more funding.
Vi has already shared its 5G investment plan with banks in order to raise debt, and if it is successful in raising additional funds, it will begin investing in 5G services.
