Voda Idea’s promoters may infuse £200 mn into the company

Wednesday 22nd March 2023 06:06 EDT

The promoters of Vodafone Idea plan to invest roughly £200 million in the business, sources said. The choice was made shortly after the government agreed to convert the outstanding interest on future statutory payments into stock, making it the telecom company's largest shareholder.

A considerably larger debt-raise may come after the investment, in addition to another promoter funding round, according to the sources. Given that Voda Idea has not yet started the rollout of the high-speed network while Reliance Jio and Airtel have begun providing customer services, it is likely to be used for the purchase of 5G telecom equipment.

“We have been informed that the promoters plan to infuse £200 million into Vodafone Idea, and this will primarily be used for kick-starting 5G plans. We are hoping that this decision will build up confidence of the broader investment community in the company so that it is able to garner more funds, including through debt,” a sources said. Vodafone Idea did not answer a questionnaire on the issue.

The promoters of the company Aditya Birla group and UK’s Vodafone Plc - had previously invested £500 million in Vodafone Idea. The government agreed to purchase almost 33% of Vodafone Idea on February 3 in lieu of paying interest totaling £1.61 billion for delayed statutory payments, providing Vodafone Idea with a significant reprieve.

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