Vodafone Idea: Fundraising Talks Are Progressing

In a regulatory filing, Vodafone Idea said that it continues to explore fundraising opportunities. The telco also said that it will inform the regulators once the board considers the fundraising proposal.

Fundraising Talks on Track: Vodafone Idea

Last week, Voice&Data reported that Vodafone Idea had started talks with Apollo Global Management. The telco will seek to raise up to $3 billion (₹22,400 crore) in funding over the next three months. Notably, the telco has massive payment obligations to pay off in the coming months.

Industry executives had stated that the telco can also offer a "sizeable" chunk of its shares. This time around, the telco is approaching the fundraiser differently. Earlier, it was focused on capital infusion through convertible debt instruments. But now, it will just offer a share, as sources report.

"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 warrant disclosures, the Company complies with the disclosure obligations under the SEBI…",said the telco in a regulatory filing on Tuesday.

Vodafone Idea needs to pay ₹22,500 crore between December 2021 and April 2022. These payments include its regular debt payments, AGR dues and spectrum allocation. It had reported a loss of ₹6985.1 crore for the last quarter, with a cash balance of ₹350 crore.

The telco has also put some of its assets on sale to raise immediate cash. It will sell its fixed-line broadband subsidiary, optic fibre unit and data centres business, hoping to raise $1 billion.