Shares of Vodafone Idea slumped to a 52-week low on Monday after banking sources told CNBC-TV18 that lenders led by State Bank of India are not in favour of granting additional loans to the company until there is clarity on government's equity conversion.
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The government has already told the telecom company that it will be considering converting licence fee and government dues into equity only after the company infuses more capital.
The company has immediate dues of around Rs 7,000 crore to Indus Towers. In November as well as December, Indus Towers had written a warning letter to Vodafone Idea — 'pay up or otherwise the services will be affected' because Indus Tower is a tower tenant for Vodafone Idea.
Also Read: KM Birla meets telecom minister in nudge to speed up Voda Idea license fee, dues conversion to govt equity
The lenders are also concerned that any fresh loans if granted, will be used to repay existing debt and not to invest in new business.
According to lenders, the immediate requirement for Vodafone Idea to take care of its financial dues is upwards of Rs 24,000 crore.
Shares of Vodafone Idea are trading 5.1 percent lower at Rs 7.40.
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