Vodafone Idea (Vi) has reportedly raised Rs 50 billion as a short-term loan. The operator has raised this sum from the banks including HDFC Bank, IDFC Bank, the State Bank of India (SBI), Union Bank of India, and IndusInd.
As per industry sources, this fund raising exercise has been done to pay two dues in two instalments to the non-convertible debenture (NCD) holders by February 2022. As per estimates, the total amount due is Rs 45 billion, out of which Vi will pay Rs 15 billion in early January 2022, while the remaining Rs 30 billion will be paid in February 2022.
The short-term loan so raised by the company from different banks is expected to be cleared within one year. The interest due on that should come around 6.5 per cent to 8.5 per cent, depending on the individual banks.
In addition, Vi is also looking to raise funds through equity. The money thus raised is being planned to utilise in paying off the short-term loan to the bank.
Meanwhile, the telco is talking with global investors and has been trying to raise funds through equity for a long-time. Also, with Vi opting for conversion of interest due on spectrum into government equity, the Indian government will own about 35.8 per cent stake in the company, while the promoter group, Vodafone Group and the Aditya Birla Group, will own 28.5 per cent and 17.8 per cent stake in the telco, respectively.
