New Delhi: It seems the woes of Vodafone Idea won’t see closure soon. The cash-strapped telecom operator has dialled a host of lenders including State Bank of India, HDFC Bank and IDFC First among others to gather loans aggregating over 7000 crore, said an Economic Times report. The bulk of loans will be used to clear a portion of its dues to Indus Towers, the report added.
On September 28, 2022, India.com reported that Indus Towers, India’s largest mobile installation tower installation company, has given an ultimatum to mobile operator Vodafone Idea (Vi) to clear its dues or else run at the risk of losing access to its towers.
The government of India had expressed interest to acquire an almost 32 per cent stake in Vodafone Idea, thereby giving a lifeline to the company. The move had received Sebi approval too. However, the government has refused to ink the deal without the promoters infusing enough cash, said an ET report. It quoted officials who said the company’s promoters, UK-based Vodafone Plc and Aditya Birla Group, have indicated willingness to infuse around Rs 2,000-3,000 crore in the telco, which is inadequate to revive the company.
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“Vodafone Idea (Vi) needs around Rs 40,000-45,000 crore for sustaining itself. Assuming that banks fund around half of it, the promoters have to put the rest. In the absence of promoter funding, it will be difficult for the company to get external investors,” said the official in the report. “Without promoter infusion, even banks are unlikely to support”, the report added.
And today, the lenders have sought a clarity on the government’s potential shareholding in the company, plans for promoters to infuse money to boost investors’ confidence.
