Vodafone Idea (Vi) has reinitiated discussions with banks to raise over ₹22,000 crore in debt funding. These talks had previously stalled due to uncertainties surrounding the company’s adjusted gross revenue (AGR) dues. The revival follows the Supreme Court’s May 19 decision to dismiss Vi’s plea for a ₹45,000 crore waiver on penalties and interest related to its ₹83,400 crore AGR liabilities
Supreme Court Verdict Provides Clarity
The Supreme Court’s ruling has provided much-needed clarity on Vi’s financial obligations, enabling banks to reassess and potentially proceed with the company’s funding proposals. “While banks had not factored in any relief on Vodafone Idea’s AGR dues, they have been awaiting greater clarity on the final liability before firming up fresh lending of over ₹22,000 crore,” said a person familiar with the matter
Planned Investments and Fundraising Strategy
Vi plans to invest ₹50,000–₹55,000 crore in capital expenditure through FY28, focusing on expanding its 4G coverage and rolling out 5G services. To support these initiatives, the company has already raised ₹26,000 crore via equity and is now seeking additional debt funding .
Government’s Stake and Support
The Indian government is set to increase its stake in Vi to approximately 48.99% by converting ₹36,950 crore of outstanding spectrum auction dues into equity. This move aligns with the government’s September 2021 relief package for the telecom sector and is expected to bolster Vi’s financial position .Reuters
Conclusion
With the Supreme Court’s decision providing clarity on AGR dues, Vodafone Idea is poised to secure significant debt funding to support its network expansion plans. The company’s efforts to raise over ₹22,000 crore in debt, coupled with government support, aim to strengthen its position in the competitive Indian telecom market.
