Vodafone Idea approached SBI for up to Rs 16,000 crore loan

1 Dec 2022 , 10:54 AM

Vodafone Idea, also known as Vi, is reportedly looking to raise up to Rs 16,000 crore from the State Bank of India (SBI). According to reports in various publications, the company has asked for loans to meet its capital expenditure needs and finance the provision of equipment to roll out 5G. Earlier this year, the company repay a short-term loan of Rs 2700 crore to SBI.

Negotiations have been going on for over a month and SBI is seeking clarification from the company on the government’s possible stake in Vi. Investors looking to fund Vi cannot do so unless they have a clear understanding of the government’s role in the company.

According to the report, if the government converts the company’s debt into shares, it will eventually become the largest shareholder with 33% of the company’s ownership. The main delay is due to uncertainty over how the government will deal with the Rs 16,130 crore accrued interest in unpaid membership fees of the Vi Adjusted Gross Revenue (AGR).

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