Vodafone Idea is all set to raise Rs 35,000 crore through term loans and bank guarantees, as planned earlier this year. The telecom company has completed its key techno-economic evaluation (TEV), required for securing debt funding.
Vodafone Idea has already raised Rs 24,000 crore in equity this year, including Rs 18,000 crore through India’s largest follow-on public offering
Vodafone Idea is all set to raise Rs 35,000 crore through term loans and bank guarantees, as planned earlier this year. The telecom company has completed its key techno-economic evaluation (TEV), required for securing debt funding.
According to a report by moneycontrol, the cash-strapped telecom company has also approached new lenders, including public sector non-bank financiers, who have shown interest in providing funds. Meanwhile, Vodafone Idea is already in advanced talks with its existing lenders, led by the State Bank of India.
At 12:10 pm, the shares of the telecom company were trading at Rs 13.28 price level, up by more than a per cent on the National Stock Exchange.
As per sources cited in the report, the banks asked a leading consultancy to assess Vodafone Idea's creditworthiness and the prospective loan amount that could be extended to the company. “We are on track with the fundraising plan outlined earlier this year. We had shared a target of raising Rs 45,000 crore via a combination of equity and debt. The next step is securing debt funding, and we are in active discussions with multiple banks. A key milestone in this process was the updating of the independent techno-economic evaluation initiated by the banks, which was completed recently,” a company spokesperson told moneycontrol.
Vodafone Idea's shareholding pattern
The company has already raised Rs 24,000 crore in equity this year, including Rs 18,000 crore through India’s largest follow-on public offering (FPO). It is now planning a fund-based facility of Rs 25,000 crore and a non-fund-based facility of Rs 10,000 crore.
Vodafone Idea has planned a capital expenditure of Rs 50,000–55,000 crore over the next three years. The company's promoters reportedly hold a total of 38.2 per cent, wherein Aditya Birla Group owning 15 per cent and Vodafone Plc Group holding 23.2 per cent.
Following April's FPO, the government’s stake in the company dropped to 23.8 per cent, down from around 33 per cent.