3 weeks ago

Vodafone Idea hopeful of closing SBI-led consortium funding deal

Vodafone Idea hopeful of closing SBI-led consortium funding deal
Vi hopes to secure funding deal with SBI-led consortium · financialexpress.com

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.

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

Sources

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