Vodafone Idea Limited (VIL), India’s third-largest telecom operator, is actively seeking funding from both investors and banks to bolster its business and maintain competition with Jio and Airtel. According to a recent note from investment banking group Jefferies, raising an additional Rs 16,000 crore in equity for Vi should not prove overly difficult.
Previous Funding & Government Support
Jefferies noted that VIL has already raised ₹44,700 crore in equity since 2019. The group believes that, combined with improving operating cashflows and ongoing government support, securing another ₹16,000 crore is a realistic prospect. The government’s support for Vi is driven by a desire to prevent the Indian telecom sector from becoming a duopoly.
Debt Raising Plans & 5G Rollout
Alongside equity funding, Vodafone Idea also plans to raise approximately Rs 25,000 crore through debt over the next several years. This capital will be primarily allocated to capital expenditure (capex), with a focus on rapidly expanding 5G coverage in priority telecom circles and enhancing 4G network availability. The increased capex is intended to close the network availability gap with competitors Jio and Airtel.
Recent data from the Telecom Regulatory Authority of India (TRAI) indicates that Vi has been steadily adding users in recent months, suggesting a potential turnaround for the company.
