Vodafone Idea Aims to Conclude Funding Arrangements by Q4 2023: CEO Akshaya Moondra

17 Aug 2023 , 11:58 AM

Vodafone Idea’s CEO, Akshaya Moondra, stated that the company is on track to finalize its funding arrangements during the October-December quarter. The funding structure, comprising equity and debt, has progressed positively over the last couple of months.

Discussions with investors have reached due diligence and proposal stages in recent weeks. A commitment of Rs 2,000 crore in financial support has been received from one of the promoters to fulfill payment obligations.

Debt funding negotiations are ongoing with a consortium of banks, with equity tie-ups also being sought. Once funds are secured, they will be utilized for 4G network expansion and the rollout of 5G services to curb subscriber churn.

The delay in government dues conversion to equity affected the progress of fundraising plans. Vodafone Idea aims to manage its debt obligations through cash generation, promoter support, and timely payments The company is seeking a 30-day grace period from the DoT for its 5G spectrum installment payment.

The total debt obligation from October to June 2024 is about Rs 2,700 crore, while cash generation is Rs 6,000 crore. Vodafone Idea plans to commence payments to vendors in the October-December quarter. The operator has yet to roll out 5G services and is working towards a commercial network rollout.

Entry-level tariff plan adjustments and tariff hikes are being considered for increased revenue. Vodafone Idea reported a widened net loss of Rs 7,840 crore for April-June quarter, with revenue from operations rising 1.2% QoQ to Rs 10,655.5 crore. Subscriber churn and losses continue, with the company losing 4.5 million mobile subscribers during the April-June quarter.

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