Debt-ridden telecom firm Vodafone Idea (Vi) has reportedly approached several banks to get loans adding up to Rs 7,000 crore, according to a report in the Economic Times (ET) on Friday.
The ET report said that the telco has approached State Bank of India, Punjab National Bank, HDFC Bank, and IDFC First Bank.
The lenders have, however, sought clarity from the telco on the government's potential shareholding and its plans to infuse capital in Vi. The bulk of the loans will be used to pay a part of its dues to Indus Towers.
Vi has dues of Rs 7,500 crore that it needs to pay to Indus Towers. The company has committed to the tower company that it would pay 100 per cent of the dues from January onwards. Indus Towers has warned Vi that if the company fails to clear its dues, it would lose its access to tower sites.
"Yes, Vi has approached us for a loan, but we haven't committed anything to them; it's at a logjam," a senior official at a bank told the publication. Another banker said that Vi has asked them to factor in Rs 15,000 crore in bank guarantees and grant fresh loans, the report said.
Another official was quoted in the report as saying that a loan cannot be given to a company "that has a negative net worth". As of September 2022, Vi's negative net worth stood at Rs 75,830 crore.
"Vi could face stern action from Indus if it fails to meet the latest payment timelines, starting from January...if it does not pay up on time, things could escalate and stronger measures to recover its dues may be discussed at Indus' next board meeting later this month," a source privy to the matter told ET.
Apart from Indus Towers, the company also needs urgent funds to pay Nokia and Ericsson. It also needs funds for the rollout of 5G services and expanding its 4G coverage to arrest the fall in customer base.
Meanwhile, telecom minister Ashwini Vaishnaw has said that Vi has various requirements, including infusion of capital, and discussions on this front are going on.
The company, reeling under debt burden of over Rs 2 lakh crore, has opted for converting about Rs 16,000 crore of interest liability payable to the government into equity, which will amount to around a 33 per cent stake in the company while promoters' holding will come down to 50 per cent from 74.99 per cent.
'Vodafone (Idea) has many requirements. It has a particular requirement of capital. How much capital, who will infuse? All those things are under discussion at this point of time," Vaishnaw added.