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Business

Vodafone Idea subsidiary VITIL raises Rs 3,300 crore via issuance of non-convertible debentures

The proceeds from the issuance will be utilised by VITIL to repay its payment obligations to Vodafone Idea.

Express News Service

Telecom service provider Vodafone Idea (Vi) on Thursday announced that it has raised Rs 3,300 crore through the issuance of unlisted, unrated, secured Non-Convertible Debentures (NCDs) by its subsidiary Vodafone Idea Telecom Infrastructure Limited (VITIL).

The company said in a press note that the fund will enable it to bolster its capital expenditure and support business growth. The proceeds from the issuance will be utilised by VITIL to repay its payment obligations to Vi.

"This fresh fundraise reinforces investor confidence in our strategy and long term vision. This capital strengthens our momentum as we continue to scale our network and enhance services for our customers. Discussions relating to long-term debt raise to support capex are ongoing with banks,” said Abhijit Kishore, CEO, VIL.

The company added that the fundraise saw strong interest exceeding the NCD issuance from a diversified group of marquee investors, including large Non-Banking Financial Companies (NBFCs), Foreign Portfolio Investors (FPIs), and Alternative Investment Funds (AIFs).

JM Financial Products Ltd acted as the exclusive debt arranger for the fundraise. Meanwhile, the cash-strapped telco received a reprieve on November 3 from the Supreme Court, which clarified that the government is free to consider relief on both additional and reassessed Adjusted Gross Revenue (AGR) dues.

In its quarterly results for the period that ended in September 2025, Vodafone Idea narrowed its consolidated net loss year-on-year to ₹5,524 crore in the second quarter of FY2025–26, compared with a loss of ₹7,175.9 crore in the same quarter last year. The average revenue per user (ARPU) improved to ₹180 in Q2 FY26 from ₹166 in Q2 FY25 — a year-on-year increase of 8.7% — driven by customer upgrades and tariff hikes.

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