Vodafone Idea Seeks 23K Crore In Term Loans

Vodafone Idea has proposed borrowing rupees 23,000 crores from banks in term loans. The company has also sought another rupees 10,000 crores in bank guarantees. This development was as per a report by The Economic Times. The Vodafone and Aditya Birla Group joint venture submitted the term loan proposal at a meeting of a State Bank of India LED banking consortium a few days ago. The loans sort are a part of the targeted 55,000 crores rupees CapEx funding Vodafone Idea needs to boost 4G coverage and kick start 5G rollouts in key markets. The companies debt raising plan comes just days after it had raised rupees 24,000 crores of equity capital Over the past few months. Vodafone Idea has been in talks with the consortium of banks to raise up to 25,000 crores via debt. Additional bank guarantees of rupees 10,000 kilos are also in the pipeline. The company, as per sources, has mentioned that it needs the funds to update the infrastructure of its mobile broadband network in its seventeen key areas. In its presentation to lenders, the stock of the company was trading at 16.87 rupees a share, which is up by almost 25% in the last one month. Market experts also believe that the telco is a long term bet. The Indian market is too big to be catered by only two big players and there will be efforts to revive the telco. The Government of India owns 32.19% stake in the company and the promoters have been infusing funds in the company over the last few months. What do you make out of this development? Please let us know in the comments section, and stay tuned to Live Mint for more such updates.