Vodafone Idea Seeks To Raise $3 Billion From Apollo Global
- ByStartupStory | July 10, 2021
Vodafone Idea seeks to raise $3 billion from Apollo Global in funding which includes both debt and equity over the next three months. This step has been taken to meet major payment obligations. Talks with Apollo, one of the executives said, are focused on business valuations, funding terms and structure of the proposed deal, and Vi is hopeful to secure it’s entire fund through Apollo this time. Vi is even open to offering a sizable stake once there is agreement on valuations and terms,” said the executive. Earlier rounds of fund-raising discussions were focused on capital infusion through convertible debt instruments.Vodafone – Idea needs to pay Rs 22,500 crore between December 2021 and April 2022 toward a mix of regular debt payments and dues related to adjusted gross revenue (AGR) and spectrum allocation
At present, UK’s Vodafone Group Plc and the Aditya Birla Group own 44.39% and 27.66%, respectively, in Vi as its co-promoters.Apollo Global could impose stringent covenants, including corporate guarantees from Vi’s co-promoters, to secure itself against potential payment defaults, another person aware of the talks said. Industry insiders, though, expect both the Birlas and Vodafone UK to oppose such terms on offering corporate guarantees.”Abundant global liquidity and high investor risk appetite offer an opportunity to companies facing short-term stress to raise capital with stricter safeguards and covenants that protect investors,” said Hemant Mishr, founder of SCUBE Capital, a Singapore-based fund. Vodafone – Idea, dup remains to be India’s only loss-making private telco as they reported a negative net worth of Rs 38,228 crore end-March, FY21. Vi’s shares closed 2.61% higher at Rs 9.03 on Friday, giving it a market cap of Rs 25,948.06 crore.
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