New Delhi: In a fresh funding, Indian telecom major Vodafone Idea (Vi) is planning to raise Rs 20,000 crore soon, Chief Executive Officer (CEO) Ravinder Takkar has said.
According to a news report, Takkar said of Rs 20,000 crore, Rs 10,000 crore would be raised in equity while the remaining as fresh loans from banks, while adding that Vi is ‘closer than ever’ in raising fresh funds.
The CEO of India’ third major telco said, “There was a list of 8-10 things in our investors’ minds, stating that if these criteria are fulfilled, we will put in the funds. We have never been closer to fulfilling this checklist, either it is already done or close to being done.”
He mentioned that talks with banks have become more willing to provide additional loans as the Department of Telecommunications (DoT) returned Rs 16,000 crore worth of bank guarantees in April.
Last year, Vodafone Idea had approved a proposal to raise about Rs 25,000 crore in funding as Vodafone promoters have already infused Rs 4,500 crore of fresh equity.
“For all practical purposes, the composition of debt and fresh equity will be 50-50 for the remaining ₹20,000 crore,” Takkar said.
Currently, Vodafone promoters hold nearly 75 per cent stake in the firm. This will be diluted to 50 per cent after the central government formalises its Rs 16,000-crore debt to equity deal.
If an investor infuses Rs 10,000 crore worth of equity in to the company, it will acquire nearly 20 per cent of the stake in the telco, according to the current market price of Vodafone Idea shares. Hence, this will also lead to further dilution of promoters Aditya Birla Group and Vodafone Plc's stakes in the company.
However, Vi CEO said that the company's plan to monetise Rs 7,600 crore worth of assets is currently put on hold. “We currently have funding plans, we have government packages coming out…we don’t see asset sale to be the right thing to do at this point,” Takkar added.