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<ul><li>Vodafone-Idea’s shares are up 5% after the company completed its stake sale in Indus Towers for ₹3,760 crore.</li><li>There are also reports that a consortium led by Oaktree Capital has offered around $2 billion of capital to invest in the Vodafone Group’s Indian arm. </li><li>Analysts believe that fresh investments and price hikes to improve average return per users (ARPU) are the only things that can help its survival.</li></ul>Vodafone-Idea has been bleeding subscribers for years and now even its postpaid customers are under threat of being wooed away by <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>. According to analysts, the only way out for the company is with the fresh infusion of funds — and that’s what the company is doing. Vodafone-Idea shares were up nearly 5% today morning after the telecom player completed the sale of its stake in Indus Towers for ₹3,760.1 crore in cash. There are also <a href="https://www.bloombergquint.com/business/oaktree-varde-said-to-offer-2-billion-funding-to-vodafone-idea">reports</a> that a consortium backed by Oaktree Capital has offered Vodafone’s Indian arm $2 billion — approximately ₹14,800 crore — in funding. <div type="image" title="Copy of sbi share price (1)" msid="79316655" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone-Idea share price since September 7 when it was rebranded as Vi!&amp;lt;/p&amp;gt;"></div> Both of these moves tie in with <keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword>’s announcement in September where it revealed its plans to raise ₹25,000 crore by selling its shares and debt. New funds and price hikes are the only way to save Vodafone-Idea As Vodafone Idea continues to lose subscribers, it's also running out of money. This limits the company’s ability to invest in networks and adds to subscribers’ woes who switch over to other telecom operators. “We believe this spiral can be broken only with significant ARPU increase and fund infusion,” said Edelweiss Research in its report dated October 30. According to Axis Capital, Vodafone Idea’s future depends on it. The new mega tower company In the endeavour to raise new funds, Vodafone Idea has sold off around 11.15% of its holding in Indus Towers to make way for a newly merged mega tower company. The Vodafone Group will still hold around 28.12% in the new firm. Meanwhile, <keyword id="6354287" type="UNKNOWN" weightage="20" keywordseo="bharti-airtel">Bharti Airtel</keyword>’s stake reduces from 53.51% in Bharti Infratel to 36.7% in the combined entity. "Merger of Indus Towers Limited &amp; Bharti Infratel Limited has been completed today. The combined entity, to be renamed as Indus Towers Limited, is listed on the National Stock Exchange of India Limited &amp; BSE Limited," said Bharti Airtel in its filing with the Indian exchanges. Oaktree, Varde Partners and others offer $2 billion in funding The Oaktree-led consortium is formed of many companies, including Varde Partners. Sources told <a href="https://www.bloombergquint.com/business/oaktree-varde-said-to-offer-2-billion-funding-to-vodafone-idea">Bloomberg</a> that they have made an offer to infuse between $2 billion to $2.5 billion of capital into Vodafone Idea. But, this is only one of the many offers that the company is currently considering. Vodafone Idea is in talks with several other investors. The company has been reporting losses for nine consecutive quarters. And, since the merger of 2017, Vodafone Idea is yet to come up green in its annual reports. Vodafone Idea is the weakest of three telecom giants in India, the other two being Bharti Airtel and Reliance Jio. And its survival is the only thing that’s standing in the way of the Indian telecom market turning into a duopoly. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/pubg-mobile-india-was-supposed-to-launch-today/articleshow/79315462.cms">PUBG Mobile India was rumoured to launch today — but there is no official update from the company</a> <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-ril-infosys-vodafone-idea-apollo-hospitals-emami-route-mobile-syngene-and-others/articleshow/79314343.cms">Top stocks to watch — RIL, Infosys, Vodafone-Idea, Apollo Hospitals, Emami, Route Mobile, Syngene, and others</a> <a href="https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms">Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months</a>

Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale

New Delhi, Feb 18 () Two mutual fund houses, UTI MF and Nippon India MF, have side-pocketed their exposures to Vodafone Idea in a bid to prevent the distressed assets from damaging the returns generated from more liquid and better-performing assets. The move comes following a rating downgrade of Vodafone Idea debt by CARE Ratings to 'BB-', which is below the investment grade. In a statement, UTI AMC said its board of trustees approved the creation of segregated portfolio in five schemes -- UTI Credit Risk Fund, UTI Bond Fund, UTI Regular Savings Fund, UTI Dynamic Bond Fund and UTI Medium Term Fund. "With effect from February 17, 2020, securities of Vodafone Idea Ltd will be segregated from total portfolio," it added. These five schemes have exposure of Rs 186 crore in debt instruments issued by Vodafone Idea. Nippon India MF, separately, said it has decided to create segregated portfolio of securities (or side pockets) of Vodafone Idea held in three schemes -- Nippon India Strategic Debt Fund, Nippon India Credit Risk Fund and Nippon India Hybrid Bond Fund -- from Monday (February 17) to protect the interest of the investors. The fund house has an exposure of a little over Rs 227 crore to Vodafone Idea debt across these three schemes. "In light of no further relief and the Supreme Court's reiteration of the requirement to make the payment imminently, the company's operations are likely to become unviable unless there is significant equity infusion," Nippon India said in a note to investors. "The promoters of VIL (Vodafone Idea Ltd) have hinted that they will be unable to continue the operations of the company on a going-concern basis unless there is meaningful relief on the AGR dues," it added. Last month, Franklin Templeton MF side-pocketed exposure to the telecom player after rating agencies had downgraded the non-convertible debentures of Vodafone Idea to below investment grade. Prior to that, Franklin Templeton MF, which had an exposure of over Rs 2,000 crore to Vodafone Idea in six of its schemes, had marked down its investment in the securities issued by the telecom player to zero. The fund house had markdown the schemes on the same day when the Supreme Court rejected the telecom player's review plea related to over Rs 40,000 crore in adjusted gross revenue (AGR)-related dues to the government. In December 2018, regulator Sebi had permitted mutual funds to create segregated portfolios, or side-pocketing, with respect to debt and money market instruments. In case of a credit event that is a credit downgrade, like below investment grade and similar, segregated portfolio may be created. Creation of segregated portfolios is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. SP HRS

UTI MF, Nippon India MF side-pocket exposure to Vodafone Idea

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

New Delhi, Jan 26 () Franklin Templeton Mutual Fund, which recently marked down its investment in the securities issued by Vodafone Idea to zero, has said its board has approved the creation of segregated portfolios (or side pockets) to hold these securities in six of its schemes.
 The move will help prevent the distressed assets from damaging the returns generated from more liquid and better-performing assets.
 The board of trustees of Franklin Templeton MF has approved the creation of segregated portfolios in six schemes -- Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
 "With effect from January 24, various securities issued by Vodafone Idea in the schemes will be segregated from the total portfolio," the fund house said in a statement.
 The decision has been taken in order to protect the value for existing unitholders in these schemes, it added.
 Earlier, rating agencies had downgraded the non-convertible debentures (NCDs) of Vodafone Idea to below investment grade.
 On January 16, Franklin Templeton, which had an exposure of over Rs 2,000 crore to Vodafone Idea in six of its schemes, had marked down its investment in the securities issued by the telecom player to zero.
 "We would like to reiterate that this fair valuation only reflects the realisable price of the relevant securities on the date of valuation and does not indicate any reduction or write-off of the amount repayable by Vodafone Idea. We continue to engage with the company in the best interest of our investors," the fund house had said.
 The fund house had markdown the schemes on the same day when the Supreme Court rejected the telecom player's review plea related to over Rs 40,000 crore in AGR related dues to the government.
 This markdown led to a drop of 4 to 7 per cent in the schemes' net asset values (NAVs) that were exposed to the debt instruments of Vodafone Idea.
 Overall, the mutual fund industry had an exposure of more than Rs 3,300 crore to Vodafone Idea.
 In December 2018, regulator Sebi had permitted mutual funds to create segregated portfolios or side pocketing with respect to debt and money market instruments. In case of a credit event that is a credit downgrade, like below investment grade and similar, segregated portfolio may be created.
 Creation of segregated portfolios is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. SP ABM
ABM

Franklin Templeton MF sidepockets exposure to Vodafone Idea

<ul><li>The board of directors at Vodafone Idea have approved a ₹250 billion fund raising plan.</li><li>This is expected to be the largest ever rights issue in the Indian corporate sector. </li><li>The funds will enable Vodafone Idea to take on market incumbents Jio and Airtel more effectively in terms of capital expenditure and low prices. </li></ul> The board of directors at Vodafone Idea have approved a $3.5 billion (₹250 billion) fund raising plan that will give the recently-merged telecom services behemoth enough ammunition to take on the mighty Reliance Jio, owned by the richest man in Asia, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>. This is expected to be the largest ever rights issue in the Indian corporate sector. In addition to enabling Vodafone Idea to take on market incumbents Jio and Airtel more effectively in terms of capital expenditure, the proceeds of the issuance will also be used to cull Vodafone's debt burden. Nearly two-thirds of the funds to be raised, or about $2.5 billion, will be secured from the promoter group Vodafone and <keyword id="44373" type="COMPANY" weightage="20" keywordseo="Aditya-Birla-Group">Aditya Birla Group</keyword>. Vodafone India's parent will provide $1.5 billion while the Aditya Birla Group will provide the remainder. Furthermore, if any portion of the rights issue is unsubscribed, the promoters will take up the slack. Investors reacted favourably to the commitment of the company's largest shareholders as the shares of the merged entity were up 3.5% when the National Stock Exchange opened this morning. Vodafone owns a 45.2% in the combined entity while the Aditya Birla Group owns 26%. After the completion of their merger last year, Vodafone-Idea, which began operations on 1st September, became India's largest telecom services provider by market share (32%) and subscribers (422 million). However, the entity's growth in revenue and subscribers significantly trails that of Jio and Airtel. In fact, it even lost 6.5 million subscribers between September and October 2018, according to a report by the Telecom Regulatory Authority of India. The funds will help it sustain low prices and match the deals offered by its competitors. Analysts are unsure, however, whether ₹250 billion will be enough for Vodafone Idea to take on Jio, which spent ₹140 billion on capex alone in the quarter ended December 2018. The merged entity might be compelled to undertake another rights issue or a bond sale later in the year. Reliance Jio’s entry into the telecom market in September 2016 had triggered an intense tariff war, driving down the cost of data in the world’s second largest market with over a billion mobile phone subscribers. While customers rejoiced, Jio's competitors were forced to contend with a loss of profitability and market share. Nearly two years into the battle for dominance, Jio with its deep pockets has kept the ante up while many others have bled to irrelevance. SEE ALSO: <a href="https://www.businessinsider.in/idea-and-vodafone-are-a-step-closer-to-becoming-indias-largest-telecom-operator/articleshow/64461224.cms">Idea and Vodafone are a step closer to becoming India’s largest telecom operator</a> <a href="https://www.businessinsider.in/two-years-on-reliance-jio-continues-to-dominate-indian-telecom-market-beating-global-giants/articleshow/67380627.cms">Two years on, Reliance Jio continues to dominate Indian telecom market, beating global giants</a>

You Searched For "vodafone idea funds" and got 5 results

Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale

Prabhjote Gill

UTI MF, Nippon India MF side-pocket exposure to Vodafone Idea

PTI

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

IANS

Franklin Templeton MF sidepockets exposure to Vodafone Idea

PTI

Vodafone Idea is readying a $3.5 billion warchest to take on Jio-- and markets are cheering

Sriram Iyer

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