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Vodafone Idea Ltd., the country’s third-largest telecom operator, is in advanced talks to raise about Rs 5,000 crore in debt financing
Vodafone Idea Fund Raise Plans
Vodafone Idea Ltd., the country’s third-largest telecom operator, is in advanced talks to raise about Rs 5,000 crore in debt financing as it works to shore up capital for its ongoing turnaround, Moneycontrol reported, citing people directly aware of the matter.
According to the report, the debt will be raised by Vodafone Idea Telecom Infrastructure Limited, a group subsidiary that houses part of the company’s telecom infrastructure and renewable energy assets. The operator has appointed JM Financial as its advisor for the transaction, which is expected to close in the next fortnight.
The fundraise, if completed on schedule, would mark a critical step in Vodafone Idea’s long and difficult effort to restore financial stability. For years, the company has struggled under the weight of enormous liabilities and declining subscriber numbers, with its financial distress aggravated by the Supreme Court’s ruling on Adjusted Gross Revenue (AGR) dues.
While the government’s decision to convert more than Rs 53,000 crore of dues into equity provided some relief, fresh capital is still needed to maintain competitiveness in India’s three-player telecom market, dominated by Reliance Jio and Bharti Airtel alongside Vodafone Idea.
Industry watchers told Moneycontrol that this fundraise will provide sufficient liquidity for Vodafone Idea’s planned network investments through the first half of 2026.
Sources said the proceeds will be used primarily for capital expenditure on network expansion and for selective 5G rollouts, ensuring that the company continues to hold on to its share of India’s fast-growing data market. Vodafone Idea Telecom Infrastructure Limited was chosen as the vehicle for the fundraise to help ring-fence core infrastructure assets and attract investor interest in a structure that offers greater security than exposure to the main operating company.
Vodafone Idea and JM Financial are yet to respond to Moneycontrol queries.
Signs of recovery in Vodafone Idea’s subscriber performance have added momentum to these efforts. In the most recent quarter, the company’s churn fell sharply, with net subscriber losses down to about half a million.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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