New Delhi: vodafone ideaSources said the promoters are likely to invest around Rs 2,000 crore in the company. The decision comes within weeks of the telco emerging as the largest shareholder after the government agreed to convert outstanding interest on pending statutory payments into equity.
Sources said there could be another promoter funding round after the investment, besides huge debt. This is likely to be used to procure 5G telecom gear as Voda Idea has not yet gone ahead with the deployment of the high-speed network. Reliance Jio And Airtel has started offering consumer services.
“We have been informed that the promoters plan to invest Rs 2,000 crore in Vodafone Idea, and this will be primarily used to roll out 5G plans. We are hoping that this decision will instill confidence of the wider investment community in the company so that it is able to raise more funds including debt,” one of the sources told TOI. Vodafone Idea did not respond to a query on the issue.
The company’s promoters – Aditya Birla Group and UK’s Vodafone Plc – had earlier invested Rs 5,000 crore in Vodafone Idea.
The government had on February 3 given a major relief to Vodafone Idea when it agreed to pick up around 33% stake in the company in exchange for interest payment of Rs 16,133 crore for delayed statutory payments.
The source said the promoters had assured the government that they would make fresh investments in the company to build investor confidence and show commitment to work on a credible turnaround plan. However, Vodafone Idea is yet to show any credible change in operations. Its losses widened to Rs 7,990 crore in October-December from Rs 7,595 crore in the previous quarter.
ARPU (average revenue per user), a key metric to gauge the health of telcos, stood at Rs 135 as against Rs 131 in the second quarter. However, it was much below the ARPU of rivals such as Airtel (Rs 193) and Jio (Rs 178) in the third quarter.
Gross debt (excluding lease liabilities and including accrued interest but not outstanding) as on December 31, 2022 was Rs 2.2 lakh crore, including deferred spectrum payment obligation of Rs 1.4 lakh crore, AGR liability of Rs 69,900 crore. Government, and a loan of Rs 13,190 crore from banks and financial institutions.
Sources said there could be another promoter funding round after the investment, besides huge debt. This is likely to be used to procure 5G telecom gear as Voda Idea has not yet gone ahead with the deployment of the high-speed network. Reliance Jio And Airtel has started offering consumer services.
“We have been informed that the promoters plan to invest Rs 2,000 crore in Vodafone Idea, and this will be primarily used to roll out 5G plans. We are hoping that this decision will instill confidence of the wider investment community in the company so that it is able to raise more funds including debt,” one of the sources told TOI. Vodafone Idea did not respond to a query on the issue.
The company’s promoters – Aditya Birla Group and UK’s Vodafone Plc – had earlier invested Rs 5,000 crore in Vodafone Idea.
The government had on February 3 given a major relief to Vodafone Idea when it agreed to pick up around 33% stake in the company in exchange for interest payment of Rs 16,133 crore for delayed statutory payments.
The source said the promoters had assured the government that they would make fresh investments in the company to build investor confidence and show commitment to work on a credible turnaround plan. However, Vodafone Idea is yet to show any credible change in operations. Its losses widened to Rs 7,990 crore in October-December from Rs 7,595 crore in the previous quarter.
ARPU (average revenue per user), a key metric to gauge the health of telcos, stood at Rs 135 as against Rs 131 in the second quarter. However, it was much below the ARPU of rivals such as Airtel (Rs 193) and Jio (Rs 178) in the third quarter.
Gross debt (excluding lease liabilities and including accrued interest but not outstanding) as on December 31, 2022 was Rs 2.2 lakh crore, including deferred spectrum payment obligation of Rs 1.4 lakh crore, AGR liability of Rs 69,900 crore. Government, and a loan of Rs 13,190 crore from banks and financial institutions.
,
- Advertisement -
