3 weeks ago
Vodafone Idea hopeful of closing SBI-led consortium funding deal
Vodafone Idea is one of India's big mobile phone companies.
It wants to build better and faster mobile networks across the country.
This building work will cost about Rs 45,000 crore over the next three years.
To pay for it, the company is trying to borrow money from a group of government-owned banks led by the State Bank of India.
It has already collected Rs 6,400 crore of the money it needs.
The company has also ordered network equipment worth about Rs 9,000 crore from companies like Ericsson, Nokia, and Samsung.
Here is some good news: for the first time since two big companies joined together to form it, Vodafone Idea gained more customers than it lost.
Its customers now spend about Rs 195 each month on average, up from Rs 190 before.
This is happening because customers are switching to new, better plans and faster 5G networks, not because prices went up.
The company hopes it can keep growing this way even without raising prices.
Vodafone Idea is in discussions with a consortium of public sector banks led by State Bank of India (SBI) for additional debt funding and is 'hopeful of closing' the deal.
The funding is meant to finance the telecom operator's Rs 45,000-crore network expansion plan over the next three years.
Fundraising is structured across three lender groups: the SBI-led consortium with six to seven banks, Indian private banks, and ECB lenders comprising foreign banks.
In the June quarter, Vodafone Idea raised Rs 6,400 crore in the first tranche of funding, including Rs 1,183 crore in warrant proceeds from promoter Aditya Birla Group.
The company reported its first quarter of positive net subscriber additions since the merger, with subscribers rising to 193.1 million and mobile ARPU up to Rs 195, driven by customer upgrades rather than tariff increases.
- Who
- Vodafone Idea, led by CEO Abhijit Kishore, and a consortium of public sector banks led by State Bank of India (SBI)
- What
- Negotiating additional debt funding to finance a Rs 45,000-crore network expansion plan
- Where
- India
- When
- During and following the June quarter (Q1 FY27)
- Why
- To fund network expansion and continue organic ARPU growth through customer upgrades to 4G/5G and unlimited plans
Key facts
- Company
- Vodafone Idea (Vi)
- Network expansion plan
- Rs 45,000 crore over three years
- First tranche raised (June quarter)
- Rs 6,400 crore
- Promoter warrant proceeds
- Rs 1,183 crore (Aditya Birla Group)
- Capex orders placed
- About Rs 9,000 crore (Ericsson, Nokia, Samsung)
- Q1 FY27 capex
- Rs 1,930 crore
- Subscriber base
- 193.1 million (up from 192.8 million)
- Mobile ARPU
- Rs 195 (up from Rs 190 earlier; Rs 177 a year ago)
Quotes
Abhijit Kishore
Chief Executive Officer of Vodafone Idea
“We are hopeful of closing the discussion with the PSU bank (consortium) led by SBI, as well as continue work on other debt‑raised streams.”
financialexpress.com
“We are upgrading almost to the tune of 3‑4% customers every quarter. That’s the whole endeavour on the organic Arpu.”
financialexpress.com








