Strong signals from investors, Vi may get much-needed cash soon
Vodafone Idea (Vi) is closer to tying up its much-delayed equity funding with chief executive Akshaya Moondra informing the Department of Telecommunications (DoT) that the telco has term sheets from several potential investors.
He said one of these potential investors will also be seeking a meeting with the authorities to get assurances on continuing government support for the cash-strapped operator.
In an August 8 letter, Moondra told DoT the external fundraise would set in motion an «accelerated» ₹65,000 crore capex plan over four years to turn around the company.
Copies of the letter, seen by ET, were marked to communications minister Ashwini Vaishnaw, finance minister Nirmala Sitharaman and the PMO.
A senior government official said Vi's fundraising is imminent and could be finalised in the next seven to 10 days. The government holds 33.1% in the company in which UK's Vodafone Group owns 32.3% and India's diversified Aditya Birla Group holds 18.1%.
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«Significant progress has been made with several groups of investors for raising equity and equity-linked capital, and we have a few term sheets from some of them,» Moondra said in his letter.
He added that a specific investor would seek time to meet relevant officials in the government to «draw comfort for continued support» to Vi, given the large government debt involved.
«Funding from the investor will enable Vi to start the capex cycle.
