Vodafone Idea’s British parent could infuse capital in the telco after refusing to do so for several months

• Vodafone Idea’s British parent, Vodafone Group, could reportedly infuse capital in the company after earlier refusing to do so.
  
• This comes after the telco opted for the adjusted gross revenue (AGR) and spectrum dues moratorium offered by the Indian government.
  
• Its rival, Airtel, too has been on a fundraising spree, with Android maker Google infusing a billion dollars in the Sunil Mittal-led company.
  

Troubled telco Vodafone Idea could finally get the much-needed capital infusion from its British parent Vodafone Group Plc., with a new report suggesting that the company could sell a stake of up to 5% in tower company Indus Towers to rival Bharti Airtel.

Bharti Airtel and Vodafone Group each hold a stake of 41.73% and 28.12% in Indus Towers.

Earlier during an analyst call this year, Vodafone Idea’s management had reiterated March 2022 as the deadline for fundraising. This comes after the telco opted to convert its AGR and spectrum dues into equity, making the Indian government the biggest shareholder of the company.

Business Insider has reached out to both Bharti Airtel and the Vodafone Group. While the Vodafone Group has refused to comment on the matter, we are yet to receive a response from Bharti Airtel.

While Vodafone Idea has been struggling to raise funds for several months now, its rival Airtel recently announced a $1 billion fundraising from Google.

Subscriber numbers continue to tumble

Vodafone Idea’s troubles aren’t limited to just ballooning losses – the telco is struggling to even hold on to its subscribers. Since January 2020, Vodafone Idea has lost over 67 million subscribers while its rivals Airtel and Jio have each added over 28 million and 46 million subscribers respectively.

The company is struggling on other key financial metrics, too:


Source: Company reports

It remains to be seen if this report of capital infusion materialises.

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