Vodafone Idea, the country’s third-largest telecom operator, is in advanced talks to raise about Rs 5,000 crore through debt financing as part of its ongoing turnaround plan, as per a report by Moneycontrol.
Deal expected to close in two weeks: Report
As per Moneycontrol reports, the fund could be raised by Vodafone Idea Telecom Infrastructure, a subsidiary that houses a part of the company’s telecom infrastructure and renewable energy assets. JM Financial has been appointed as the advisor for the transaction, which is expected to close within the next two weeks, as per Moneycontrol.
By using its infrastructure arm for raising funds, the company is looking to ring-fence core assets and attract investors with greater security compared to the main operating company, highlights the moneycontrol report.
AGR dues continue to weigh on balance sheet
The move is seen as an important step in Vodafone Idea’s long battle to restore financial stability. The company has been under pressure for years due to high liabilities and a shrinking subscriber base, further worsened by the Supreme Court’s ruling on Adjusted Gross Revenue (AGR) dues.
While the government’s decision to convert over Rs 53,000 crore of dues into equity gave the company temporary relief, fresh capital is needed to stay competitive against Reliance Jio and Bharti Airtel.
Rs 22,000 crore loan plan stalled; Cabinet nod key for relief
Raising debt has not been easy for the operator, as banks remain cautious due to uncertainty over AGR liabilities. Vodafone Idea faces annual AGR payments of nearly Rs 18,000 crore starting March 2026.
The company has also revived parallel talks with banks to secure loans worth over Rs 22,000 crore, but lenders are waiting for more clarity from the government and regulators on AGR.
Minister of State for Communications Chandra Sekhar Pemmasani recently told Moneycontrol that any fresh relief for the company must go through the Union Cabinet, involving the Prime Minister’s Office, the Finance Ministry, and the Department of Telecommunications.