Voda Idea to conclude funding talks next qtr

livemint.com:

Vodafone Idea expects to finalize agreements to raise external equity and bank-led funding in the upcoming quarter, as discussions with potential investors are advancing towards the due diligence stage, said chief executive Akshaya Moondra. “I think we are making good progress. We expect to conclude the discussions in the coming quarter, as far as equity funding is concerned," he said in response to queries during an earnings call following the June quarter results on Wednesday.

“In the last two months, our discussions with multiple groups of investors, on both equity and equity-linked instruments, has progressed. It has gained a lot of momentum and we have seen very good progress in the last couple of months, particularly in the last one month. Some of these discussions have started progressing to the level of due diligence, and the proposals are being discussed with these investors." The telecom operator has been making attempts to raise ₹20,000 crore since 2020, and continues to hold talks with potential investors as well as lenders.

Earlier it had said that the funds will be raised through a mix of equity and debt. Vi has been in talks with three entities for the equity investments and a consortium of lenders to avail debt, which will be used for its capital expenditure requirements and also to roll out 5G services. However, the talks are yet to conclude.

Bank funding will be contingent on the equity funding, part of which, or ₹2,000 crore, will be infused by one of the promoters, Moondra said. However, he did not reveal the identity of the promoter entity. “As far as debt funding is concerned, we have been engaging with a consortium of banks for a long time.