“The company keeps discussing with various banks its funding and other requirements in the ordinary course of its business, including with State Bank of India who are one of our main bankers. As of now there is no development, which would require disclosure under the SEBI Listing Regulations," Vodafone Idea informed in an exchange filing today.
A report from Bloomberg had suggested that Vodafone Plc’s troubled India unit is in talks with the country’s largest lender about fresh loans. The report added that SBI has asked Vodafone Idea to first outline a turnaround strategy and present a detailed plan on their financial viability including equity infusion from the largest shareholders, cash conservation plans, tariff outlook and a road map to return to profits.
Banks have become more amenable toward the unprofitable wireless operator after government announced a slew of policy relief measures in September which helped Vodafone Idea survive a potential bankruptcy as the government allowed more time to mobile phone companies to pay their dues.
This will extinguish some of the bank guarantees Vodafone Idea gave to the government, giving the lenders more elbow room to extend credit, sources told Bloomberg.
Shares of Vodafone Idea were trading nearly 3% lower at 10 apiece on the BSE in Monday's closing hour of the trading session.MINT PREMIUM See All