Mumbai & Kolkata: Vodafone Idea (Vi) has assured lenders that it expects to conclude its delayed fundraising, initially of about $1 billion (Rs 7,500 crore), by the end of June and that it won’t default on any upcoming payments, people familiar with the matter said.Separately, one of Vi’s domestic lenders, a large public-sector bank, recently extended a bank guarantee for about Rs 1,420 crore by another year, which will be used to clear its remaining dues to the government for 4G spectrum acquired in March. Industry experts said fundraising has been a challenge for Vi with its weak financial performance and rapid loss of users. Prospective investors want the co-promoters – the UK’s Vodafone Plc and the Aditya Birla Group – to also infuse capital. It added that “guarantees amounting to Rs 11,371.6 crore are due to expire during the next 12 months and Rs 872.7 crore of incremental guarantees are to be provided.”Unable to increase tariffs due to competitive pressures, Vi needs to raise cash quickly to bolster 4G operations in 16 priority circles to fight its financially stronger rivals Bharti Airtel and Reliance Jio , arrest its steady loss of mobile users and clear statutory dues to the government.It has Rs 50,400 crore of adjusted gross revenue dues payable to the government over 10 annual instalments through March 31, 2031. Its annual spectrum payment instalments of about Rs 15,500 crore would start from FY23, once the two-year moratorium ends.

Source: Economic Times May 03, 2021 03:16 UTC