Vodafone Idea is likely to stop its ongoing fundraising until a new government takes charge after the elections and clarifies the company’s statutory dues into equity.
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The telecom operator aims to raise up to another Rs 35,000 crore through debt and other facilities, after raising more than Rs 20,000 crore last month.
As per the report, Vi’s lenders are seeking clarity on future equity conversions by the government and also the outcome of the company’s curative plea in the Supreme Court over an earlier order on its arrears based on adjusted gross revenue.
Vi is looking to borrow another Rs 25,000 crore and line up another Rs 10,000 crore via non-fund-based facilities, the report added.
On May 21, the telecom company announced that its board has approved raising up to Rs 2,075 crore from Oriana Investments, an entity of promoter Aditya Birla Group, through a preferential share issue.
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In a regulatory filing, Vodafone Idea informed the exchanges that its board has approved the allotment of 139.54 crore equity shares to Oriana Investments Pte Limited.
In April, Vodafone Idea shareholders approved a fund raise of Rs 20,000 crore on April 3, which could potentially unlock revenue opportunities for multinational telecom gear vendors such as Nokia and Ericsson.
Furthermore, the board has approved only a part of the initial amount of Rs 45,000 crore planned by the company.
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Vodafone Idea is a partnership between Aditya Birla Group and Vodafone Group. The company provides pan India voice and data services across 2G, 3G and 4G platforms.
