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<keyword id="19899016" type="General" weightage="100" keywordseo="Vodafone-Idea" source="keywords" meta.keywordsubtype="org" meta.entityname="Vodafone Idea" meta.hostid="261" meta.entityid="Vodafone Idea">Vodafone Idea</keyword> has secured contracts worth Rs 30,000 crore with <keyword id="19941076" type="General" weightage="20" keywordseo="Nokia" source="keywords" meta.keywordsubtype="org" meta.entityname="Nokia" meta.hostid="261" meta.entityid="Nokia">Nokia</keyword>, <keyword id="19962937" type="General" weightage="20" keywordseo="Ericsson" source="keywords" meta.keywordsubtype="org" meta.entityname="Ericsson" meta.hostid="261" meta.entityid="Ericsson">Ericsson</keyword>, and <keyword id="19897758" type="General" weightage="20" keywordseo="Samsung" source="keywords" meta.keywordsubtype="org" meta.entityname="Samsung" meta.hostid="261" meta.entityid="Samsung">Samsung</keyword>, a PTI report revealed. These contracts, which span a period of three years, are a crucial part of the company's Rs 55,000 crore capital expenditure (capex) plan. The investment will focus on expanding 4G coverage, launching 5G services, and meeting the growing demand for data in India. The debt-laden telecom operator announced the deal as it strives to regain market share in an increasingly competitive industry. Vodafone Idea has faced financial difficulties since its merger in 2018 between Vodafone Group's Indian arm and Aditya Birla Group's Idea Cellular. Since then, the company has struggled to compete with larger rivals such as <keyword id="19951944" type="General" weightage="20" keywordseo="Bharti-Airtel" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharti Airtel" meta.hostid="261" meta.entityid="Bharti Airtel">Bharti Airtel</keyword> and Reliance Jio, both of which have made significant inroads into India’s telecom market. The Rs 30,000 crore deal with Nokia, Ericsson, and Samsung is expected to provide Vodafone Idea with the necessary equipment to expand its 4G coverage from 1.03 billion to 1.2 billion people, as well as initiate the rollout of 5G services in key markets. The company confirmed that supplies under the new contract would begin arriving in the next quarter. In a statement, Vodafone Idea said that its primary goal is to enhance 4G connectivity across India while simultaneously preparing to introduce 5G technology. ""Vodafone Idea has concluded a mega, about USD 3.6 billion (around Rs 300 billion), deal with Nokia, Ericsson and Samsung for supply of network equipment over a period of three years. The capex programme is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth," the company said in a statement. Akshaya Moondra, CEO of Vodafone Idea, said as per a Livemint report, “"We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to work closely with all our partners as we move into the 5G era." (With Reuters and PTI inputs)

Vodafone Idea seals Rs 30,000 crore deal with Nokia, Ericsson, and Samsung for 4G and 5G expansion

Just ahead of its mega <keyword id="20008249" type="General" weightage="20" keywordseo="FPO" source="keywords">FPO</keyword> opening to <keyword id="21332860" type="General" weightage="20" keywordseo="public-investors" source="keywords">public investors</keyword>, <keyword id="19899016" type="General" weightage="20" keywordseo="Vodafone-Idea" source="keywords">Vodafone Idea</keyword> (<keyword id="20062540" type="General" weightage="20" keywordseo="vil" source="keywords">VIL</keyword>) has announced closure of its anchor book allocation, raising about Rs 5,400 crore from marquee global as well as domestic investors, according to a statutory filing by the <keyword id="20132985" type="General" weightage="20" keywordseo="telco" source="keywords">telco</keyword>. This could be the third-largest anchor book after One 97 Communications and Life Insurance Corporation (LIC). One 97 Communications and LIC had raised Rs 8,235 crore and Rs 5,627 crore in the anchor round, respectively. In a notification to the exchanges on Wednesday, VIL said it has allotted 490.9 crore shares to 74 funds at Rs 11 apiece, which is also the upper end of the price band. This translated into a transaction size to Rs 5,400 crore. Of the total allocation to <keyword id="21330641" type="General" weightage="20" keywordseo="anchor-investors" source="keywords">anchor investors</keyword>, 79.52 crore stocks, or 16.2 per cent of the total, were allocated to five domestic mutual fund through a total of 11 schemes. Those who were allotted shares include GQG Partners Emerging Markets Equity Fund, Fidelity, UBS Fund Management, Abu Dhabi Investment Authority, Australian Super, Troo Capital, Morgan Stanley, Citigroup Global Markets Mauritius, and Jupiter Fund Management. Additionally, domestic investors, including Motilal Oswal Mutual Fund, HDFC Mutual Fund, SBI General Insurance and Quant Mutual Fund, were allocated shares in the anchor round. The Rs 18,000-crore FPO of Vodafone Idea will open for public subscription on April 18 and conclude on April 22, marking the biggest FPO in the country. The price band has been set at Rs 10-11 per share. Prior to this, the largest FPO in the Indian market was a Rs 15,000 crore share-sale by YES Bank in 2020. The fundraise would give the ailing telco the firepower to improve its positioning in the Indian telecom market, where it currently trails larger rivals such as Reliance Jio and Bharti Airtel, by a wide margin. The funds will also help VIL shore up finances for the much-delayed <keyword id="20366727" type="General" weightage="20" keywordseo="5G-rollout" source="keywords">5G rollout</keyword> and strengthening 4G services, and payment of vendor dues. On April 6, the VIL Board approved raising Rs 2,075 crore from promoter Aditya Birla Group and increasing its authorised share capital to Rs 1 lakh crore. Earlier this year, Vodafone Idea had outlined plans to raise Rs 45,000 crore through a mix of equity and debt as it looked to match services offered by rivals Reliance Jio and Bharti Airtel and arrest an alarming and prolonged subscriber churn. VIL has also been fighting a desperate battle for survival, saddled with debt of Rs 2.1 lakh crore and quarterly losses. According to Trai data, Vodafone Idea continued to bleed on the subscriber front. VIL lost 15.2 lakh wireless subscribers, plunging its mobile subscriber base to 22.15 crore in January, in sharp contrast to subscriber gains by Jio and Airtel.

Ahead of FPO, Vodafone Idea garners Rs 5,400 cr from anchor investors

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s shares zoomed on Monday after the government agreed to convert interest dues worth ₹16,133 crore into equity.</li><li>The equity conversion will make the government the largest shareholder of Vodafone Idea, with a 33% stake.</li><li>The government will remain a passive investor, leaving the Aditya Birla Group and Vodafone Plc as the primary decision makers of the telco.</li></ul>Vodafone Idea’s shares zoomed by 25% on Monday hitting an upper circuit, after the government agreed to convert interest dues worth ₹16,133 crore into equity. The move breathed a fresh lease of life into the telco’s attempts to raise funds to make payments to vendors and sign contracts with telecom equipment makers and roll out its 5G network. The share price of the troubled telco is back to its December 2022 levels, erasing the losses it saw this year, so far. <div type="image" title="Vodafone Idea share price April 2022 to Feb 2023." msid="97642952" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price in FY23&amp;lt;/p&amp;gt;"></div> “The total amount to be converted into equity shares is ₹16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of ₹10 each at an issue price of ₹10 each,” Vodafone Idea said in an exchange filing on February 3. The equity conversion will pave the way for the government to become the largest shareholder of Vodafone Idea, long after the telecom reforms package was <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">announced in September 2021</a>. As a result of this, the Aditya Birla Group’s stake will stand at 31.8%, while Vodafone Plc’s stake will be at 18.3%. This is a reduction from the existing stake of 75% held by the two promoters. <div type="Article" hostid="261" msid="86221662" title="Government picking up a stake in Vodafone Idea ‘might be a remedy worse than the disease’, say experts" mstype="2" mssubtype="0"></div> However, Aditya Birla Group, and Vodafone Plc, will continue to drive the company. Vodafone Idea’s management has already underlined that the government will neither take a seat on the company’s board, nor will it take decisions regarding the company’s operations. <cmsannotation type="cmsannotation" annotationid="Capital infusion key to Vodafone Idea’s future" comment="subhead" text="Capital infusion key to Vodafone Idea’s future">Capital infusion key to Vodafone Idea’s future</cmsannotation> Capital infusion remains a key to Vodafone Idea’s future, according to analysts. The telco has been struggling to retain subscribers while its rivals <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> and Bharti Airtel have seen both their subscriber numbers as well as the average revenue per user (ARPU) climb up each quarter since FY22. In the company’s post-result investor call in Q2, Vodafone Idea’s chief executive officer Akshaya Moondra had said, ‘’We are trying to close the funding quickly so that some of the backlog of vendor payments that we have can be addressed.” Vodafone Idea needs funds not just to fund its capital expenditure requirements, but also to service its debt. According to a Motilal Oswal report, its current earnings before interest, taxes, depreciation and amortization (EBITDA) of ₹8,700 crore in FY23 is inadequate to service debt. Capex is another piece of puzzle that the telco needs to solve. Vodafone Idea is yet to roll out its 5G offerings even as Jio and Airtel 5G services have been available in several parts of the country since October 2022. “The much-awaited capital raise remains critical to provide immediate liquidity and invest in the rollout of 5G and extending 4G infrastructure. Vodafone Idea acquired 5G spectrum in the 3300Mhz and 26GHz bands in the recent auction (September 2022) but unlike Reliance Jio and Bharti Airtel, it has not deployed the spectrum and remains significantly behind in 4G network rollout too,” said the Motilal Oswal report. It remains to be seen if the equity conversion gives investors enough confidence about the future of Vodafone Idea, and whether it will be enough for them to infuse funds that the telco needs desperately. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/adani-stocks-59844-crore-market-capitalisation-wiped-out-today-in-morning-trading/articleshow/97638076.cms">Adani group stocks continue to plummet – lose ₹59,844 crore in market capitalisation on Monday</a> <a href="https://www.businessinsider.in/business/corporates/news/adanis-stock-rout-can-impact-its-ability-to-raise-capital-or-refinance-debt-says-moodys/articleshow/97582403.cms">Adani’s stock rout can impact its ability to raise capital or refinance debt, says Moody’s</a> <a href="https://www.businessinsider.in/budget/news/budget-for-the-amrit-kaal-powered-by-capex-rooted-in-fiscal-consolidation/articleshow/97551916.cms">Budget for the Amrit Kaal: Powered by capex, rooted in fiscal consolidation</a>

Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> reported a net loss of ₹7,990 crore in Q2 as compared to ₹7,231 crore in the same quarter, a year ago. </li><li>The telco also lost 5.8 million subscribers during the quarter, but its average revenue per user (<keyword id="107848" type="General" weightage="80" keywordseo="arpu" source="Orion">ARPU</keyword>) improved to ₹135 from ₹131 in the previous quarter. </li><li>The company’s CEO <keyword id="2786361" type="General" weightage="80" keywordseo="akshaya-moondra" source="Orion">Akshaya Moondra</keyword> maintained that Vi is engaging with lenders and investors to raise funds for network expansion and 5G rollout. </li></ul>Vodafone Idea’s troubles continue to worsen as its net loss widened to ₹7,990 crore in Q3, both on a year-on-year and sequential comparison. It was also higher than analyst estimates, albeit<a href="https://economictimes.indiatimes.com/markets/stocks/earnings/vodafone-idea-q3-preview-debt-ridden-telco-may-report-wider-loss/articleshow/97863951.cms"> marginally</a>. The telco reported a net loss of ₹7,596 crore in Q2, and ₹7,231 crore in Q3 last year. On the other hand, its revenues grew 9.3% YOY to ₹10,621 crore. Sequentially, its topline was flat – the telco<a href="https://www.businessinsider.in/business/telecom/news/vodafone-ideas-q2-loss-widens-to-7596-crore/articleshow/95282354.cms"> reported</a> a revenue of ₹10,615 crore in Q2. Vi’s stock was trading flat in the first half on Wednesday at ₹7.7. <cmsannotation type="cmsannotation" annotationid="Subscriber base continues to shrink, but 4G user additions boost ARPU" comment="subhead" text="Subscriber base continues to shrink, but 4G user additions boost ARPU">Subscriber base continues to shrink, but 4G user additions boost ARPU</cmsannotation> Like its peers <keyword id="6354287" type="General" weightage="80" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword> and <keyword id="6354504" type="General" weightage="80" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword>, Vodafone Idea also reported a slight uptick in its average revenue per user (ARPU) during the quarter to ₹135, as compared to ₹131 in the previous quarter, and ₹115 a year ago. Its ARPU is still significantly lower than that of its rivals Bharti <keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> and Reliance Jio. While Airtel<a href="https://www.businessinsider.in/business/telecom/news/bharti-airtel-q3-net-profit-jumps-91-to-1588-crore-misses-estimates/articleshow/97698481.cms"> reported</a> an ARPU of ₹193 in Q3, Jio<a href="https://www.businessinsider.in/business/telecom/news/reliance-jios-net-profit-up-3-2-sequentially-at-4881-crore-in-q3-on-better-subscriber-mix/articleshow/97179677.cms"> reported</a> an ARPU of ₹178.2. Vi’s total subscriber base continued to shrink, declining to 228 million in Q3 from 234 million in the previous quarter. In the same period last year, Vi’s subscriber base stood at 247 million. On a positive note, Vi’s 4G subscriber base continued to increase. In Q3, Vi added 1 million 4G subscribers, taking the total to 121.6 million at the end of the quarter. Vi’s 4G subscribers as a percentage of its total subscribers increased to 53.2% during Q3, up from 51.5% in the previous quarter. Vodafone Idea’s Q3 in numbers: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY22 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,621 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,615 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9,717 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,990 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,596 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- ₹7,231 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ARPU </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹135 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹131 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹115 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total subscribers </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">228.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">234.4 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">247.2 million </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4G subscribers </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">121.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">120.6 million </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">117 million </td></tr></tbody></table> Source: Company reports <cmsannotation type="cmsannotation" annotationid="Engaging with lenders and investors for 5G rollout says Vi" comment="subhead" text="Engaging with lenders and investors for 5G rollout says Vi">Engaging with lenders and investors for 5G rollout says Vi</cmsannotation> Even as its rivals Bharti Airtel and Vodafone Idea rolled out their respective 5G networks extensively across the country, Vi says it is still in talks with stakeholders for its 5G rollout. “We continue to remain engaged with our lenders for further debt fund raising as well as with other parties for equity or equity-linked fund raising, to make required investments for network expansion and 5G rollout,” said Akshaya Moondra, CEO, Vi. Vi acquired 5G spectrum worth ₹18,799 crore, payable in 20 annual installments. Its rivals Airtel and Reliance Jio<a href="https://www.businessinsider.in/business/telecom/news/jio-vs-airtel-which-one-will-offer-faster-and-more-reliable-5g-services/articleshow/93516727.cms"> acquired</a> spectrum worth ₹43,084 crore and ₹88,078 crore, respectively. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-posts-820-crore-net-profit-in-q3-gautam-adani-says-current-market-volatility-temporary/articleshow/97914997.cms">Adani Enterprises posts ₹820 crore net profit in Q3: Gautam Adani says current market volatility temporary</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-group-market-cap-falls-below-10-lakh-crore/articleshow/97907746.cms">Adani group’s market cap falls below ₹10 lakh crore as sell-off continues</a> <a href="https://www.businessinsider.in/business/corporates/news/nykaas-stock-plunges-4-2-after-its-q3-net-profit-slips-70/articleshow/97901748.cms">Nykaa’s stock plunges 4.2% after its Q3 net profit slips 70%</a>

Vodafone Idea Q3 net loss widens to ₹7,990 crore, average revenue per user edges up to ₹135

<ul><li><keyword id="1553175" type="General" weightage="80" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> is in talks with its lenders for a loan recast.</li><li>The telco last month opted for the adjusted gross revenue (AGR) dues moratorium.</li><li><keyword id="6354955" type="General" weightage="20" keywordseo="kumar-mangalam-birla" source="Orion">Kumar Mangalam Birla</keyword> may infuse $150 million into Vodafone Idea.</li></ul>Vodafone Idea and <a href="https://www.businessinsider.in/business/telecom/news/airtel-opts-for-agr-dues-moratorium-becomes-the-second-telco-to-do-so/articleshow/87254202.cms">Airtel</a> last month opted for the adjusted gross revenue (AGR) dues moratorium that was announced by the government as part of the <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">telecom relief package</a>. By opting for the moratorium, Vodafone Idea was able to free up its cash-flow by up to ₹60,000 crore for four years, putting it in a better position to recover from its woes. According to a <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/vodafone-idea-in-talks-with-banks-for-loan-recast/articleshow/87616740.cms?from=mdr">report</a> by The Economic Times (ET), now Vodafone Idea is in talks with its lenders, including a consortium led by the State Bank of India (SBI), its biggest lender for a recast of loans. "After the government extended relief to the telco, lenders believe that uncertainty over its future is over for now," said an official aware of the discussions to ET. Vodafone Idea is reportedly looking for a stay on its interest payments, lower rates or a longer payment tenure. Banks have an exposure of ₹28,740 crore to Vodafone Idea, of which, SBI alone has an exposure of ₹11,000 crore. <cmsannotation type="cmsannotation" annotationid="What is a loan recast?" comment="subhead" text="What is a loan recast?">What is a loan recast?</cmsannotation> A loan recast is restructuring of a loan, offering concessions such as stay on interest, longer repayment tenure, lower interest or a combination of these. Banks’ exposure to Vodafone Idea: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% of loan book </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IDFC First Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,240 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.90% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,000 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.40% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,500 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.65% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,000 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.44% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">State Bank of India </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹11,000 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.43% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,700 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.23% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,300 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.21% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,000 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.09% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Nomura Vodafone Idea has reportedly also informed its lenders that it has resumed talks with global investors to raise funds. The funds will be used by the telco for infrastructure improvement. As per <a href="https://www.livemint.com/companies/news/birla-may-infuse-at-least-150-mn-into-vodafone-idea-this-month-11635879044507.html">reports</a>, Aditya Birla Group chairman Kumar Mangalam Birla may infuse $150 million into the company, followed by <keyword id="137231" type="General" weightage="20" keywordseo="vodafone-group" source="Orion">Vodafone Group</keyword> which is expected to monetise a part of its stake in Indus Towers and invest it into Vodafone. The AGR dues moratorium and reports of fresh investments have also boosted the confidence of banks in Vodafone Idea. "There is no reason for us to be really concerned. They have plans which they are working on in terms of raising capital, etc, and also increasing the investment in technology. So, that account is back on track,” <a href="https://www.financialexpress.com/industry/provisions-plan-banks-stay-cautious-on-vodafone-exposures/2363215/">said</a> SBI Chairman Dinesh Khara. Business Insider India has written to Vodafone Idea and is awaiting a response. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-need-tariff-hikes-agr-moratorium-might-not-be-enough-say-analysts/articleshow/86285450.cms">Vodafone Idea and Airtel need tariff hikes, AGR moratorium might not be enough, say analysts</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-vodafone-idea-and-jio-welcome-telecom-relief-package-but-analysts-are-divided-on-whether-it-is-enough/articleshow/86252002.cms">Airtel, Vodafone Idea and Jio welcome telecom relief package, but analysts are divided on whether it is enough</a> <a href="https://www.businessinsider.in/business/telecom/news/yes-bank-sbi-and-others-want-vodafone-idea-to-be-saved-heres-why/articleshow/86196076.cms">Yes Bank, SBI and others want Vodafone Idea to be saved, here’s why</a>

After relief from Indian government, Vodafone Idea reportedly turns to banks for a loan recast

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s board of directors is scheduled to meet on October 21 to consider raising funds. </li><li>The meeting comes at a crucial time, when <keyword id="6375231" type="General" weightage="50" keywordseo="indus-towers" source="Orion">Indus Towers</keyword>, one of the main tower providers of Vodafone Idea, has demanded the telco pay up its dues. </li><li>Shares of the telco gained after the fundraising announcement. </li></ul>Vodafone Idea’s board of directors will meet on October 21 to consider fundraising via convertible debentures, the telco said in an exchange filing, without divulging details about the quantum of the fund raise. "We wish to inform you that a meeting of the board of directors of the company is scheduled to be held on October 21, 2022, inter-alia, to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential/private placement basis to a vendor," Vodafone Idea said in its exchange filing. Convertible debenture is a long-term debt that can be converted into equity shares after a specified period. Vodafone Idea’s latest attempt to raise funds is for investing in its network and also to pay its dues to its service providers, including Indus Towers – a tower company in which rival telco Bharti <keyword id="15491" type="General" weightage="50" keywordseo="airtel" source="Orion">Airtel</keyword> holds a 47.76% stake. Notably, Vodafone Idea’s parent company, <keyword id="105732" type="General" weightage="50" keywordseo="vodafone-group-plc" source="Orion">Vodafone Group Plc</keyword>, also holds a 21.05% stake in Indus Towers. Vodafone Idea<a href="https://economictimes.indiatimes.com/industry/telecom/clear-dues-or-lose-tower-access-indus-towers-to-vodafone-idea/articleshow/94492219.cms"> reportedly</a> owes over ₹7,000 crore to Indus Towers. The tower company has asked the telco to clear dues or risk losing access to towers from November. Reacting to the news, Vodafone Idea’s shares rose 1% to ₹8.55. This is, however, still below the ₹10 level that the government is reportedly waiting for before converting its debt to equity, as part of the <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">telecom relief package announced in 2021</a>. The package gave telcos an option to go for a four-year moratorium on their adjusted gross revenue (AGR) and spectrum dues, among other things. <cmsannotation type="cmsannotation" annotationid="The tide that won’t stem" comment="subhead" text="The tide that won’t stem">The tide that won’t stem</cmsannotation> In 2022 so far, Vodafone Idea has lost over 12 million subscribers, according to data from telecom regulator TRAI. Its rivals <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> and Airtel continue to add subscribers at a rapid pace. <div type="image" title="Airtel Reliance Jio Vodafone Idea subscriber additions Jan-Aug 2022." msid="94963881" hostid="261" sizebytes="23682" caption="&amp;lt;p&amp;gt;Telecom subscriber trends in 2022 so far&amp;lt;/p&amp;gt;"></div> While the telecom sector is<a href="https://www.businessinsider.in/business/telecom/news/telecom-sector-to-ring-in-stability-in-q2-jio-and-airtel-expected-to-grow-stronger-vi-weaker/articleshow/94709309.cms"> expected</a> to ring in stability in Q2, analysts suggest Vodafone Idea will continue to grow weaker. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/maggi-maker-nestl-indias-net-profit-grows-8-3-to-668-crore-in-q2/articleshow/94960866.cms">Maggi maker Nestlé India’s net profit grows 8.3% to ₹668 crore in Q2</a> <a href="https://www.businessinsider.in/business/corporates/news/moonlighting-is-fine-as-long-as-it-is-unrelated-to-what-we-do-for-our-clients-says-lt-tech/articleshow/94958101.cms">Moonlighting is fine as long as it is unrelated to what we do for our clients, says L&amp;T Tech</a> <a href="https://www.businessinsider.in/business/news/jaypee-and-amrapali-groups-collapse-leaving-buyers-in-the-lurch/articleshow/94961447.cms">70,000 housing units in trouble after Jaypee and Amrapali groups head into financial trouble</a>

Vodafone Idea board to meet on October 21 to consider fundraising via convertible debentures

What if Vodafone Idea dies?

Debt-ridden telecom company <keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>'s board will meet on Friday to finalise plans for raising funds. Vodafone Idea has informed the Bombay Stock Exchange (<keyword id="35140" type="General" weightage="50" keywordseo="bse" source="Orion">BSE</keyword>) that its board will meet on October 21 to consider a proposal to raise funds through the issuance of convertible debentures. "<keyword id="6583012" type="General" weightage="50" keywordseo="vodafone-idea-ltd" source="Orion">Vodafone Idea Ltd</keyword> has informed the BSE that the meeting of the <keyword id="136326" type="General" weightage="50" keywordseo="board-of-directors" source="Orion">Board of Directors</keyword> of the company is scheduled on October 21, to consider and approve a proposal for issuance of debenture securities convertible into equity shares on a preferential or private placement basis to a vendor, subject to regulatory and other statutory approvals as may be required, including shareholders' approval," the company said in a notice to the BSE. Vodafone Idea has been trying to raise funds for a long time but has not succeeded. It may try and raise funds through the issuance of convertible debentures through private placement to a vendor. Vodafone Idea owes an estimated Rs 6,800 crore to mobile tower giant Indus Towers and also Rs 2,400 crore to ATC. Indus Towers is said to have asked Vodafone Idea to clear its outstanding dues and pay every month on time for the continuity of business post-November 2022. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/bajaj-finance-net-profit-zooms-88-yoy-to-2781-crore-asset-quality-sees-improvement/articleshow/94990323.cms">Bajaj Finance net profit zooms 88% YoY to ₹2,781 crore, asset quality sees improvement</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/274-vehicles-are-stolen-every-day-in-india-check-out-which-cities-have-most-thefts/slidelist/94987936.cms">Did you know 274 vehicles are stolen every day? See which cities have most thefts</a>

Vodafone Idea's board to finalise fund raising plan on Friday

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s Ravindar Takkar wants to triple the money that the telco makes from its users, over the next three to five years. </li><li>However, the telco is the worst-placed in the Indian telecom industry in this regard. </li><li>Even in its heyday, Vodafone India managed an ARPU of just ₹205, considerably lower than Takkar’s ambitious target. </li><li>It remains to be seen if the advent of 5G will be the lifeline that Vodafone Idea needs. </li></ul>For a brief, very brief time Vodafone Idea was the biggest telecom player in India - right after the merger. But Jio did not allow them to enjoy the spot as its entry changed the rules of the game – effectively taking away the margins and earnings of the entire sector along with subscribers. Before 2016, 1GB of 3G data cost as much as ₹400. Reliance Jio brought it down by nearly 84 times — as 1GB 4G data at an effective price of ₹4.75, along with unlimited voice calls and SMS. Six years since, Vodafone Idea has fallen into a distant third player in terms of subscriber numbers and its debt and liabilities too swelled. In time, the competitive intensity has also cooled and now it wants to get back into the game by improving earnings from its customers. Vodafone Idea’s managing director and chief executive officer, Ravindar Takkar, <a href="https://www.livemint.com/industry/telecom/vi-won-t-hesitate-to-lead-next-round-of-tariff-hikes-11654016903997.html">says</a> he wants to make thrice as much money from his users, than he does today. "All telecom operators want to increase their ARPUs, and Vodafone Idea needs it more than others. It can do this by increasing tariffs or data usage,” Mahesh Uppal, telecom analyst and director, Com First India told Business Insider India. Vodafone Idea’s current average revenue per user (ARPU) stands at ₹124, and Takkar wants this to increase to ₹350-400 in the next three to five years. Vodafone Idea is not alone in wanting to increase tariffs, which gives it the room it needs to try to grow its revenue without losing subscribers. “There was a time when some operators were not keen to raise tariffs. That has changed, and there is no longer an unwillingness to increase rates,” said Uppal. <div type="Article" hostid="261" msid="91906347" title="Vodafone Idea will have a solid ‘turnaround’ war chest if it clinches the Amazon deal" mstype="2" mssubtype="0"></div> For comparison, in its heydays, Vodafone India’s ARPU, just before the launch of Jio, was at ₹205. Its significant other, Idea, had an ARPU of 144. Airtel, the strongest of the lot even today, had an ARPU of ₹194 in the same period. Fast forward to today, this is where the three telcos stand when it comes to the money they make from each user. Also, Jio’s advent also coincided with 4G services whose network and spectrum costs are higher than that of 3G, thinning their overall margins. <div type="image" title="Airtel Jio Vodafone Idea ARPU Q4 FY22." msid="91941626" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea&amp;#39;s average revenue per user is significantly behind Airtel and Jio&amp;#39;s&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Vodafone Idea needs more than hope and prayers to increase its revenue" comment="subhead" text="Vodafone Idea needs more than hope and prayers to increase its revenue">Vodafone Idea needs more than hope and prayers to increase its revenue</cmsannotation> Vodafone Idea has been <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-will-raise-up-to-25000-crore-by-selling-shares-and-taking-loans/articleshow/77933604.cms">looking to raise ₹25,000 crore since 2020</a>. It managed to raise <a href="https://www.businessinsider.in/business/news/vodafone-raises-stake-to-47-61-in-vodafone-idea-through-subsidiary-prime-metals/articleshow/90639253.cms#:~:text=Vodafone%20raises%20stake%20to%2047.61%25%20in%20Vodafone%20Idea%20through%20subsidiary%20Prime%20Metals,-Advertisement&amp;text=British%20telecom%20major%20Vodafone%20has,regulatory%20filing%20said%20on%20Monday.">₹4,500 crore</a> earlier in April this year, and <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-will-have-a-solid-turnaround-war-chest-if-it-clinches-the-amazon-deal/articleshow/91906347.cms">new reports</a> suggest that it could receive another ₹20,000 crore soon. But the telco needs more than that, and hope and prayers to increase revenue. One of the rays of hope on offer could be 5G services. 5G spectrum auctions are expected to take place in the next few weeks, and if the telco manages to raise ₹20,000 crore in time, it could be used towards scooping up the necessary 5G spectrum. Vodafone Idea has previously <a href="https://www.businessinsider.in/business/telecom/news/vodafone-ideas-5g-trials-achieve-speeds-in-excess-of-3-7-gbps-in-pune/articleshow/86360103.cms">demonstrated</a> its 5G-readiness, but proper network testing is only possible after the spectrum auctions take place. <cmsannotation type="cmsannotation" annotationid="Two-faced challenge at Vodafone Idea’s doors" comment="subhead" text="Two-faced challenge at Vodafone Idea’s doors">Two-faced challenge at Vodafone Idea’s doors</cmsannotation> Despite Takkar’s ambitious target to reach ₹350-400 ARPU levels, Vodafone Idea has its task cut out. It faces not one, but two challenges wrapped in the same cloth – subscribers. For a long time now, Vodafone Idea has been losing millions of subscribers every month. In fact, since the beginning of 2020, Vodafone Idea has lost 72 million subscribers. Its rivals, Airtel and Reliance Jio, have made merry, splitting these subscribers amongst themselves. <div type="image" title="Airtel Jio Vodafone Idea subscriber chart Jan 2020 to March 22." msid="91941644" hostid="261" caption="&amp;lt;p&amp;gt;Net addition of subscribers since 2020&amp;lt;/p&amp;gt;"></div> Despite its attempts, Vodafone Idea has been unable to stem the loss of subscribers. Out of the 27 months since January 2020, the telco has lost subscribers in 25 months. <div type="Article" hostid="261" msid="91757795" title="Jio, Airtel and Vodafone Idea are reportedly planning on increasing prices again" mstype="2" mssubtype="0"></div> To make matters worse, Vodafone Idea also has the worst 4G subscriber rate – less than half of its subscribers use 4G. <div type="image" title="Airtel Reliance Jio Vodafone Idea total subscribers vs 4G subscribers March 2022." msid="91941658" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea has the lowest rate of 4G subscribers&amp;lt;/p&amp;gt;"></div> A 4G subscriber is more valuable than a 2G or 3G subscriber, since 4G plans cost more. However, in the case of Jio, this does not directly reflect in its ARPU numbers since it also offers ultra-low-cost 4G plans to its JioPhone users. To overcome this challenge and to substantially increase its revenue, Vodafone Idea not only has to stem the loss of subscribers, but also convert more of them to 4G from the legacy 2G network. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-will-have-a-solid-turnaround-war-chest-if-it-clinches-the-amazon-deal/articleshow/91906347.cms">Vodafone Idea will have a solid ‘turnaround’ war chest if it clinches the Amazon deal</a> <a href="https://www.businessinsider.in/business/telecom/news/jio-airtel-and-vodafone-idea-are-reportedly-planning-on-increasing-prices-again-in-end-of-year/articleshow/91757795.cms">Jio, Airtel and Vodafone Idea are reportedly planning on increasing prices again</a> <a href="https://www.businessinsider.in/business/telecom/news/mukesh-ambanis-jio-lags-behind-airtel-which-is-the-top-telecom-brand-in-india/articleshow/91935279.cms">Mukesh Ambani's Jio lags behind Airtel which is the top telecom brand in India</a>

Vodafone Idea wants to triple the money it makes from its users, but it will take more than hope and prayers to achieve it

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> could be close to clinching an investment of ₹20,000 crore – something that it has been looking for since 2020.</li><li>This probable fundraise comes less than two months after its promoter, Vodafone Plc. pumped in ₹4,500 crore via its equity arms.</li><li>Amazon, one of the reported investors, has been exploring an entry in the Indian telecom sector since 2020 by picking up a stake in Vodafone Idea.</li></ul>Shares of Vodafone Idea have been gaining for the last two days - which is a rare occurrence. In fact, its market cap swelled by ₹2,000 crore after news of its fundraising plans, especially from a well capitalized global player like Amazon have started doing the rounds. For nearly three years now, Vodafone Idea has been <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-will-raise-up-to-25000-crore-by-selling-shares-and-taking-loans/articleshow/77933604.cms">trying to raise ₹25,000 crore</a> to tide over its AGR troubles as well as make network and spectrum investments into a market which now shows signs of optimism with low competitive intensity. As per media reports, it might be close to clinching a deal with global tech major Amazon, to raise as much as ₹20,000 crore. <div type="image" title="Vodafone Idea 01_01_22 to 31_05_22." msid="91906362" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price in 2022&amp;lt;/p&amp;gt;"></div> According to a report by the <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/close-to-tying-up-rs-20000-crore-to-fight-rivals-vodafone-idea-md-ravinder-takkar/articleshow/91731538.cms">Economic Times</a>, Vodafone Idea is expected to raise ₹10,000 crore via an equity stake sale, and ₹10,000 crore via debt. The latter would send its total debt over ₹2 lakh crore, but the company’s managing director Ravinder Takkar is not flinching, saying that the government owns nearly 90% of this debt. Earlier, the Takkar-led telco had said it <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-will-raise-up-to-25000-crore-by-selling-shares-and-taking-loans/articleshow/77933604.cms">needs ₹25,000 crore</a> to turn around its fortunes and remain competitive – of this, it has already <a href="https://www.businessinsider.in/business/news/vodafone-raises-stake-to-47-61-in-vodafone-idea-through-subsidiary-prime-metals/articleshow/90639253.cms#:~:text=Vodafone%20raises%20stake%20to%2047.61%25%20in%20Vodafone%20Idea%20through%20subsidiary%20Prime%20Metals,-Advertisement&amp;text=British%20telecom%20major%20Vodafone%20has,regulatory%20filing%20said%20on%20Monday.">raised ₹4,500 crore</a> in April. If they raise the said amount too, then their war chest will be almost full – and bring it back into the market with full force. <cmsannotation type="cmsannotation" annotationid="Vodafone Idea continues to lose millions of subscribers every month" comment="subhead" text="Vodafone Idea continues to lose millions of subscribers every month">Vodafone Idea continues to lose millions of subscribers every month</cmsannotation> Vodafone Idea’s bid to turn around its business and stabilize its operations will take a lot of work. It has been losing millions of subscribers every month. In the first three months of 2022, it lost 4.7 million subscribers. Throughout the fiscal year 2021-22, the telco lost nearly 23 million subscribers – an average of 1.9 million subscriber loss every month. <div type="image" title="Airtel Jio Vodafone Idea subscriber chart 2021-22." msid="91906564" hostid="261" caption="&amp;lt;p&amp;gt;Net subscriber additions in 2021-22&amp;lt;/p&amp;gt;"></div> In the same period, its rival Airtel added 8 million subscribers, although Jio lost nearly 19 million subscribers, too. However, Jio’s losses are on account of the telco wiping its slate clean of subscribers who are inactive and not paying. While it’s not certain who the investor is, a report by The Ken suggests it could be Amazon. The e-commerce giant has so far been left behind by its rivals Google, Facebook and Microsoft, who have all either partnered with Airtel and Reliance Jio, or have invested billions of dollars in these companies. <div type="javascript" title="Custom" contenttype=""><cdata><![CDATA[]]></cdata></div> Vodafone Idea, on the other hand, is yet to see a single dollar from them. Amazon was <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/amazon-verizon-may-invest-over-4-billion-in-indias-vodafone-idea-report/articleshow/77904230.cms">said</a> to be exploring a joint investment of $4 billion with US carrier Verizon in Vodafone Idea back in 2020, but that did not pan out. SEE ALSO: <a href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-a-story-on-how-to-generate-wealth-via-hope-fomo-and-of-course-debt/articleshow/91829090.cms">Understanding Gautam Adani’s rise: a story on how to generate wealth via hope, equity and of course debt</a> <a href="https://www.businessinsider.in/stock-market/news/these-four-drone-company-stocks-gave-record-breaking-returns-in-one-year/articleshow/91892935.cms">These four drone company stocks gave record breaking returns in one year</a> <a href="https://www.businessinsider.in/cryptocurrency/news/indian-government-looking-for-ways-to-tax-nfts-as-per-a-new-report/articleshow/91882530.cms">After cryptos, the taxman could come for your NFTs says a new report</a>

Vodafone Idea will have a solid ‘turnaround’ war chest if it clinches the Amazon deal

British telecom major <keyword id="15492" type="General" weightage="100" keywordseo="vodafone" source="Orion">Vodafone</keyword> has raised its stake in debt-ridden <keyword id="6584552" type="General" weightage="50" keywordseo="vodafone-idea-limited" source="Orion">Vodafone Idea Limited</keyword> to 47.61 per cent through its subsidiary Prime Metals, a regulatory filing said on Monday. The company earlier held 44.39 per cent stake in <keyword id="1553175" type="General" weightage="80" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> Limited (VIL). "Prime Metals held 2,18,55,26,081 equity shares, representing 7.61 per cent of the equity share capital, of Vodafone Idea Limited (the "company"). <keyword id="42733" type="General" weightage="50" keywordseo="pml" source="Orion">PML</keyword> has acquired 570,958,646 equity shares of the company through allotment of equity shares pursuant to a preferential issue of the company," the filing said. On Thursday, Vodafone Idea had said that its board has approved the allotment of 338.3 crore equity shares at Rs 13.30 per scrip to three promoter group entities - <keyword id="777130" type="General" weightage="50" keywordseo="euro-pacific-securities" source="Orion">Euro Pacific Securities</keyword>, Prime Metals and <keyword id="13300460" type="General" weightage="50" keywordseo="oriana-investments" source="Orion">Oriana Investments</keyword> - for about Rs 4,500 crore. This includes allotment of 1,96,66,35,338 equity shares to Euro Pacific Securities (promoter), 57,09,58,646 equity shares to Prime Metals (promoter), and 84,58,64,661 equity shares to Oriana Investments (promoter group). The telecom operator in March had announced a Rs 14,500-crore fundraising plan, where promoters would inject Rs 4,500 crore. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/tatas-super-app-neu-is-all-set-to-launch-this-week/articleshow/90638405.cms">Tata’s super app ‘Neu’ is all set to launch this week</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/oneplus-nord-buds-expected-to-launch-soon-fcc-listing-reveals-design-and-battery-capacity/articleshow/90638554.cms">OnePlus Nord Buds expected to launch soon — FCC listing reveals design and battery capacity</a>

You Searched For "vodafone idea debt" and got 11 results

Vodafone Idea seals Rs 30,000 crore deal with Nokia, Ericsson, and Samsung for 4G and 5G expansion

BI India Bureau

Ahead of FPO, Vodafone Idea garners Rs 5,400 cr from anchor investors

PTI

Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity

Rounak Jain

Vodafone Idea Q3 net loss widens to ₹7,990 crore, average revenue per user edges up to ₹135

Rounak Jain

After relief from Indian government, Vodafone Idea reportedly turns to banks for a loan recast

Rounak Jain

Vodafone Idea board to meet on October 21 to consider fundraising via convertible debentures

Rounak Jain

What if Vodafone Idea dies?

Rounak Jain

Vodafone Idea's board to finalise fund raising plan on Friday

IANS

Vodafone Idea wants to triple the money it makes from its users, but it will take more than hope and prayers to achieve it

Rounak Jain

Vodafone Idea will have a solid ‘turnaround’ war chest if it clinches the Amazon deal

Rounak Jain

Vodafone raises stake to 47.61% in Vodafone Idea through subsidiary Prime Metals

PTI

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