Vodafone, Aditya Birla Group might make investments $400 million into Vodafone Concept

Promoters Vodafone Group Plc and the Aditya Birla Group (ABG) are more likely to make investments $400 million as recent fairness to assist the financially fragile telecom operator , Livemint reported on Wednesday, citing two folks conscious of discussions.

Vodafone and ABG, who personal 44.39% and 27.66% respectively in Vi, might inject $200 million to retain their stakes within the telco as soon as it raises funds from exterior buyers, the folks knowledgeable the publication.

This comes after Vodafone Concept’s board accredited a plan to boost Rs 25,000 crore from exterior buyers in September 2021.

“Kumar Mangalam Birla is predicted to take a position the quantity through unlisted promoter entities, and not one of the group’s listed firms will make investments,” one of many two folks was quoted as saying.

The report added that telco will make the most of the recent funding in the direction of finishing up day by day enterprise, spend money on progress technique, together with capital expenditure for increasing 4G networks and in the direction of 5G infrastructure and spectrum auctions.

On September 15 the Union Cupboard introduced a reduction package deal for the telecom sector, together with a four-year moratorium on AGR and spectrum funds, lowered financial institution ensures, and the choice to transform statutory dues to authorities fairness.

The reduction package deal has eased out Vodafone Concept’s rapid money stream burden and will increase curiosity in buyers, in response to trade specialists.

The fee moratorium itself will permit the telco to save lots of round Rs 1 lakh crore yearly, they added. Earlier than the package deal was introduced, ABG and the Vodafone Group had refused to place recent fairness into the telco.

ET reported on Tuesday that Kumar Mangalam Birla might inject a few of his personal capital into Vodafone Concept whereas UK’s Vodafone Group might promote a minimum of part of its stake in tower agency – Indus Towers – and channel the proceeds into the loss-making telco. This can be adopted by exterior funding.

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