“An issue of fresh convertibles or equities is being considered. Birla is likely to invest from his personal assets as early as this month," one of the two people cited above said on condition of anonymity.
“This capital infusion by Birla is crucial. Post Birla’s infusion in a personal capacity, Vodafone Group Plc (the company’s UK-based promoter), too, is planning to infuse a similar amount into Vodafone Idea either as a single investor or as part of a consortium of investors, who may together invest close to $1 billion into Vodafone Idea in March 2022," this person added.
Birla’s capital infusion aims to enhance investor confidence and help the company meet immediate working capital needs, especially related to launches of new services to attract fresh customers, this person added.
Vodafone Group may invest in Vodafone Idea by using the proceeds from a planned sale of a stake in Indus Towers, jointly owned by Vodafone Idea’s rival Bharti Airtel and Vodafone Group through a 69.85% stake.
Spokespeople for Aditya Birla group and Vodafone Group did not respond to emails seeking comment.
On 13 October, Mint reported that Vodafone Idea promoters may invest $400 million to strengthen the company. The promoters’ decision to inject money after earlier ruling out such a possibility comes after the government announced a rescue package, including a four-year payment holiday on regulatory dues, to help prevent any further deterioration in the financial health of telecom operators.
Aditya Birla Group owns a 27% stake in Vodafone Idea through Grasim Industries, Hindalco Industries, Birla TMT holdings and other group companies. Vodafone Group owns 44% of the Indian unit.MINT PREMIUM See All