Banks led by State Bank of India will reportedly revisit the possibility of extending fresh funding to Vodafone Idea Limited (Vi) after the government approved a relief package that freezes the telco’s adjusted gross revenue (AGR) dues and extends repayment over 16 years.
Bankers said the move has changed Vi’s liability profile, but added that lenders would need clearer visibility on the company’s funding requirements and long-term business plans before considering any new exposure.
In addition, with greater clarity on AGR dues, bankers said both debt and equity funding options are back on the table. The company may also explore raising funds through the equity markets, while bringing in a strategic investor remains another possible route.
Banks have remained cautious on lending to Vi due to its large liabilities, mainly comprising statutory dues such as deferred spectrum payments and AGR obligations, along with strained cash flows and concerns over its ability to service additional borrowings.
