India’s Vodafone Idea Ltd looking to raise fresh funds of around $4 billion from the U.S. wireless carrier Verizon Communications Inc and Amazon Inc. On Thursday, Mint’s report suggests that Verizon & Amazon may invest in Vodafone Idea for a stake.
Interestingly, shares of Vodafone Idea climbed 25 percent in Thursday’s trade amid these media reports. This development comes a day ahead of Vodafone Idea’s board meeting on funding raising. Meanwhile, shares of Vodafone Idea up by 24.92 percent to Rs 12.38. The stock also gains 11.86 percent in the previous session.
As per several media reports, the struggling telecom operator is close to tying up funding, as the company has to pay AGR payments. On Tuesday, the Supreme Court of India gave the mobile carrier 10 years to settle government dues.
Who Is The Parent Company Of Vodafone Idea?
Notably, this is a joint venture between Britain’s Vodafone Group Plc and India’s Idea Cellular. It has paid the Indian government 78.5 billion rupees ($1.1 billion) in telecoms dues, according to regulatory filings. But the company still owes roughly 500 billion rupees ($6.8 billion) more.
Clearly, it would require further funds, in addition to price hikes, in the coming years. Apart from this, the company may also seek additional support from the government. This support will be in the form of a further two-year moratorium on deferred spectrum liabilities to remain solvent beyond FY23. But nothing is official yet. These are the speculations made by sources familiar with this matter.