Bloomberg reports that Vodafone Idea is in talks with lenders to get a loan of Rs 15,000 crore ($1.8 billion) over the next two years.
This measure is part of the company's bigger intention to raise Rs 25,000 crore in debt. The telecom business, led by billionaire Kumar Mangalam Birla, plans to boost its operations, which have been struggling financially.
The monies obtained are expected to be used to pay down operating debts, accelerate the development of a 5G network, and support bids for more airwaves.
Following a successful $2.2 billion share sale, Vodafone Idea has approached state-owned banks such as State Bank of India, Bank of Baroda, and Punjab National Bank, as well as private-sector lenders.
According to the article, the State Bank of India is set to lead a consortium of state-owned and private bankers for this loan, which will be given in installments.
Discussions are continuing, and the parameters of the fundraiser, including the final amount, may yet alter.
The company's latest follow-on public offer (FPO) of Rs 18,000 crore, India's largest, completed successfully after being subscribed six times.
According to a report by brokerage company Nuvama, Vodafone Idea might be included to the MSCI Global Standard index during the August review. This inclusion might result in about $213 million in investor inflows into Vodafone Idea shares.
India's position in the MSCI Emerging Markets Index has increased significantly, from 8% in early 2020 to 18% now.
Nuvama expects this percentage to exceed 20% by the second half of 2024, highlighting India's growing weight in the developing market index.
