Vodafone Idea seeks Rs 7,000 crore emergency loans from banks

6 Jan 2023 , 10:10 AM

Vodafone Idea (Vi) has contacted a number of lenders, including the State Bank of India, Punjab National Bank, HDFC Bank, and IDFC NSE First, to arrange loans totaling more than Rs7,000 crore. According to the sources, the majority of the loans will be used to pay off a portion of the company’s debts to Indus Towers.

Lenders sought clarification on the government’s potential stake in the telco, plans for promoters to inject equity to boost investor confidence, and business expansion.

According to an official at another lender, Vi has asked them to factor in Rs15,000 crore in bank guarantees and make new loans.

Vi, which is co-promoted by the UK’s Vodafone Plc and India’s Aditya Birla Group (ABG), requires cash quickly because its debts to Indus have accumulated to around Rs7,500 crore. It has committed to paying the tower company 100% of its current dues beginning in January, as well as clearing its outstanding as of December 31, 2022, over seven months beginning this month.

For feedback and suggestions, write to us at [e-mail]