Vodafone Group Plc and Aditya Birla Group plan to tap private equity and pension funds to raise $1 billion (about Rs 7,000 crore) once they pump in $2.5 billion through a rights issue into Vodafone Idea, Mint reported citing three people aware of the talks.
“There has been an initial round of talks with some potential investors” one of the three people told Mint on condition of anonymity.
The merged entity's net debt stood at Rs 1.2 lakh crore as of September while the net debt of Bharti Airtel stood at Rs 1.15 lakh crore during the same period.
Vodafone Idea urgently need to shore up its equity base and spend on upgrading its telecom network to retain its position as the country’s largest telecom operator, said the report.
Vodafone group plans raise the entire $1.5 billion by pledging its stake in Indus Towers Ltd, which is in the midst of a merger with Bharti Infratel, the report said.
Vodafone Group owns 42 percent stake in Indus Towers. The stake in Indus Towers was not part of the Vodafone-Idea merger.
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First Published: IST