Debt-funding delay to slow down Vodafone Idea turnaround, govt relief likely. Delay in Vodafone-Idea's ₹25,000 crore debt funding plan: This will slow down the company's financial recovery, VI may get relief from the government

Debt-ridden telecom company Vodafone-Idea (VI) may get a delay in its Rs 25,000 crore debt funding plan. However, according to analysts, the company may get relief from the government and under this a large part of its statutory outstanding amount can be converted into equity.

Analysts say that this may slow down the financial recovery of the telecom operator. The company's management last week acknowledged potential delays in securing debt funding.

Actually, the Supreme Court had rejected the AGR (Adjusted Gross Revenue) curative petition of the company. Earlier, the company had expressed hope that it would get the bank loan by the end of November.

Vodafone-Idea says that lenders have adopted a wait and watch strategy regarding its debt funding plan. Talks with lenders were progressing rapidly until the company's curative AGR petition was rejected, but after the petition was rejected, the lenders put their decision on hold.

Behind Jio and Airtel in terms of network parameters

Ashvinder Sethi, partner at Analysis Mason, said, “The capital expenditure target of Rs 50,000-55,000 is very important for VI, as it lags behind Reliance Jio and Airtel in terms of many network parameters like number of sites, percentage of 4G sites, 5G launching. “The delay in debt funding will impact Vodafone's ability to achieve financial recovery,” he said.

Vodafone management says that the telecom company and its promoters are talking to lenders for a loan for capital expenditure under the network expansion plan for the next three years.

The capital expenditure will mainly focus on 4G coverage, capacity expansion and 5G service. IIFL Securities said the debt raise is important to implement Vodafone's capital expenditure plan.

Vodafone-Idea shares fell 50% this year

Shares of VI today (Tuesday, November 19) closed at Rs 7.39 after falling 3.65%. The company's stock has fallen 16.47% in one month, 47.60% in 6 months and 50% in one year. The market-cap of the company is Rs 49.56 thousand crore.

VI losses of ₹7,176 crore in second quarter

Vodafone-Idea has suffered a consolidated loss of Rs 7,176 crore in the second quarter of FY 2025. The company had suffered a loss of Rs 8,746 crore in the same quarter a year ago. VI losses have declined by 18% year-on-year.

Vodafone-Idea's consolidated operating revenue in the July-September quarter increased by 2.01% year-on-year to Rs 10,932 crore. The company's revenue in the same quarter a year ago was Rs 10,716 crore.