Cash-strapped Vodafone Idea looks to Monetize Assets to raise $1 Billion

Vodafone Idea (Vi) is hoping to raise up to $1 billion (around Rs 7,400 crore) from the sale of its fastened line broadband subsidiary, optic fibre unit and knowledge centres enterprise, because it seeks to ease its money crunch and generate funds to meet upcoming liabilities.

The telco wants to pay Rs 22,500 between December 2021 and April 2022 towards a mixture of common debt, adjusted gross revenue and spectrum dues. Its money stability stood Rs 350 Crore on March 31 and loss was Rs 6,985.1 Crore for the March quarter. The firm has been attempting, for the final 9 months, to shut a 25,000 crore fundraise by a mixture of debt and fairness, however has struggled regardless of a number of rounds of discussions with quite a few buyers.

Vi chief monetary officer Akshay Moondra, at an analyst name final week, mentioned the telco experts to generate Rs 3,000 crore in money this fiscal 12 months from tax refunds and sale of land parcels that had been purchased for knowledge centres.

Sale and Leaseback

“Vi is expecting between $800 million and $ 1billion (from the broadband, optic fibre and data centre sales) but investors are not very keen at these price points,” mentioned a funding banker conscious of the event.

A second individual mentioned that proposed fibre asset sale might occur on a “sale and leaseback model,” wherein the telco mainly sells the fibre assets and takes the capability on long run lease from the customers.

Concerns on Viability

The JV UK’s Vodafone Group Plc and India’s diversified Aditya Birla Group has, in a letter to telecom division, flagged its monetary struggles. It sought deferment of spectrum dues of Rs 8,292 crore by 12 months. It mentioned its operations weren’t producing enough money and the stress within the business due to below cost’s tariffs was scuttling its efforts to raise the Rs 25,000 crore it introduced final September.