Fresh funds elude Vi, 5G service in limbo

livemint.com:

NEW DELHI : Debt-laden telecom operator Vodafone Idea’s plans to raise external funds of over ₹20,000 crore may get further delayed and are unlikely to culminate even in the quarter ending March 2024, said two people aware of the development. While the telecom service provider has been in talks with investors, including those from the US, the massive debt liability of over ₹2 trillion, besides limited amount of capital coming in from promoters, is being viewed as factors leading to the delay, one of the people said on the condition that he not be named. “It will take time.

The expectation was that funding would come in by the year end, but that is not happening. Whether it will happen in the next quarter is also uncertain," the second person said, asking not to be named. One of Vodafone Idea’s promoters was supposed to provide ₹2,000 crore financial support to the carrier, in case it was required to pay up the annual instalment of spectrum charge that fell due on 17 August, 2023.

While this was not needed, as the company was able to make the payment by raising fresh debt from banks, the promoters have since not pitched in with fresh capital. A Vodafone Idea’s spokesperson said, “Discussions on funding are underway. As a listed company, we shall make disclosures at the appropriate time." The company did not elaborate on the timing of the fund-raise or the avenues that it was exploring to raise capital, much needed to start 5G services.