Vi’s board will deliberate a ₹2,000 crore fundraising proposal from Vodafone Group on December 9. This preferential issue aims to bolster the debt-laden telecom operator, addressing its financial obligations and operational requirements.
The planned infusion comes as Vodafone Group evaluates liquidating its stake in Indus Towers, a move projected to generate significant liquidity for supporting Vi’s operations.
Vodafone’s strategic stake sale and implications
Vodafone recently announced plans to sell its remaining 3% stake in Indus Towers, estimated to fetch ₹2,840 crore. The proceeds will clear $101 million (approximately ₹856 crore) in pending dues and contribute to Vi’s financial recovery. Earlier, Vodafone raised ₹15,300 crore by offloading an 18% stake in Indus Towers.
With Vodafone holding a 22.56% stake and Aditya Birla Group at 14.76%, the Indian government remains Vi’s largest stakeholder at 23.15%.
Debt burden drives ₹2,000 crore proposal
Vi faces significant financial challenges, including government payment obligations totaling ₹2.12 trillion as of Q2 FY24. This includes ₹1.41 trillion in deferred spectrum dues and ₹70,320 crore in Adjusted Gross Revenue (AGR) liabilities.
The preferential issue could offer a lifeline, helping Vi address its mounting debts while ensuring operational continuity.
Focus on financial revival
As the telecom sector undergoes rapid transformation, Vi’s board remains committed to restructuring its finances. The proposed ₹2,000 crore infusion aligns with this goal, potentially stabilizing its operations and supporting network expansions in the competitive Indian market.
This fundraising move reflects Vi’s resolve to navigate financial challenges while leveraging Vodafone Group’s strategic support for long-term growth.
