Vodafone-Idea’s problems may end, Birla group may give booster dose.

Aditya Birla Group has commenced the exercise of raising funds at the promoter level to infuse equity in Vodafone Idea (Vi) Limited and is in discussions with global banks to raise term loans to subscribe for preferential allotment of shares. These funds will be used by the promoters for the planned Rs 5,000-crore equity infusion in Vi, following the Indian government’s decision to convert Rs 16,133 crore of outstanding balance into equity.

Vodafone to sell stake in Indus Towers

There is no clarity yet on how much Vodafone Group Plc will invest. A person with knowledge of the matter said that Vodafone Plc is likely to sell its remaining 21.05 per cent stake in Indus Towers and use the amount for investment. Also, efforts are on to rope in a third long-term investor. Talking to ET, a senior banker said that the possible way to infuse equity would be preferential allotment.

The banker said that in the past too, promoter entities of the Aditya Birla Group had similarly taken loans from foreign banks with tenures of three to five years, which were used to infuse equity in the company. Aditya Birla Group, Vodafone Group and Vodafone Idea have not responded to any query.

2.2 lakh crore debt

After the equity conversion, the government’s stake in Vodafone Idea stands at 33.1 per cent. Aditya Birla Group and Vodafone now own 32 per cent and 18 per cent respectively. As on March 31, 2022, Vi’s net worth was negative Rs 61,965 crore, with a total gross debt of Rs 2.2 lakh crore. Due to which the company is still under cloud of concern. For the first nine months of the current financial year, Vi had posted a net loss of Rs 22,882 crore.