Vodafone Idea (Vi) could soon get easier repayment terms from the banks. But this will only happen if the promoters of the company pitch in with additional capital or if the telco somehow manages to raise fresh funds. According to an ET Telecom report, Vodafone Idea is currently in talks with the banks and lenders, including the State Bank of India (SBI), which alone has an exposure of about Rs 11,000 crore. Vodafone Idea has an exposure of nearly Rs 14,000 crore in total, and if the talks with the banks and lenders go successfully, the pressure from the telco for repayment of dues will be lifted majorly.
Lenders Not Afraid of Vodafone Idea’s Future Anymore
Before the relief measures were announced, everyone right from investors, loyal customers, and the banks/lenders were worried about Vodafone Idea going out of business. But the government has ensured that the relief measures remove that worry. As per the publication’s report, Vodafone Idea has informed the lenders that there are global investors who are interested in helping with raising funds that will be used for enhancing the infrastructure. Vodafone Idea’s shares closed at Rs 10.43 on Tuesday, 6.2% higher on the Bombay Stock Exchange (BSE). There are reports saying that Kumar Mangalam Birla, Chairman of the Aditya Birla Group (ABG), is planning to infuse his own capital of around $200 million in the telco. At the same time, the Vodafone Group of the UK might sell a stake in the Indus Towers to raise funds for investing in Vodafone Idea. Since Vi has accepted the four-year moratorium on payments of the spectrum and adjusted gross revenue (AGR) dues, the telco is in a much better position than it used to be. Banks really don’t have any reason to be worried about Vodafone Idea now. The telco has enough time to grow, and also the relief measures allow it to improve cash flow.
