Debt-ridden telecom operator Vodafone Idea Vodafone Idea is on the verge of a substantial financial infusion of at least $1 billion to strengthen its financial stability, according to sources familiar with the matter.
According to an exclusive report from ET NOW, the funds will come from various sources, including the Aditya Birla Group, bank financing, and overseas investors, with advanced discussions underway with offshore investors. If negotiations proceed as expected, the deal could be finalized within a month, providing much-needed financial support to Vodafone Idea.
Aditya Birla Group entities, as major stakeholders in Vodafone Idea, are expected to provide what's being termed as 'confidence capital.' Banks will play a vital role, offering the remaining funds primarily through debt financing. Additionally, a promoter group entity has pledged up to Rs 2,000 crore in case of further funding requirements, reinforcing their commitment to the company's stability.
The Aditya Birla Group declined to comment on the matter, while Vodafone Idea stated they were not aware of any such discussions regarding capital infusion. This move by Vodafone Idea reflects the evolving dynamics in the telecom industry, where strategic financial decisions are becoming increasingly important in the face of rising competition and rapid technological advancements.
On Thursday, Vodafone Idea shares closed at 10.70 rupees, a slight decrease from the previous day's close at Rs 10.55.