New Delhi, March 12 (IANS) Facing a cash crunch, Vodafone Idea has secured an equity commitment of $1 billion from investors. The telecom company received a “soft commitment” from investors, including funds committed from promoters, to use towards paying vendors and 4G and 5G capital expenditures. Promoters Aditya Birla Group and Vodafone Group hold significant stakes in the company.
Vodafone Idea’s promoters include Aditya Birla Group and Vodafone Group, which hold 18.1 per cent and 32.3 per cent stakes, respectively. The government, which owns nearly 33 per cent stake, is unlikely to participate in the fundraising. The company did not comment immediately on the development, while its stock closed at Rs 13.65 on Tuesday.
Last month, Vodafone Idea approved a fundraising of Rs 45,000 crore via equity and debt. The much-awaited capital raise is crucial to ensure immediate liquidity and facilitate network expansion, according to Motilal Oswal Financial Services. Despite the fundraising efforts, the company still holds a substantial debt of Rs 2.1 trillion, posing challenges against future EBITDA projections.
