NEW DELHI: Telecom service provider Vodafone Idea is reportedly in advanced discussions to raise about ₹5,000 crore through debt financing, as part of its ongoing turnaround strategy.
According to a report, the funds will be raised by Vodafone Idea Telecom Infrastructure, a subsidiary that holds a portion of the company’s telecom infrastructure and renewable energy assets.
The company plans to issue bonds with tenors of two and three years, aiming to raise Rs. 3,000 crore and Rs. 2,000 crore, respectively. It is expected to tap private credit funds for this issuance and offer coupon rates of approximately 12% for the two-year bonds and 14% for the three-year bonds.
In May 2025, Vodafone Idea, led by billionaire Kumar Mangalam Birla, received board approval to raise Rs. 20,000 crore through a combination of equity and debt instruments.
During the company’s June quarter earnings call, former CEO Akshaya Moondra said that Vodafone Idea was also exploring non-bank avenues to support its capital expenditure plans.
Meanwhile, on the stock market, shares of Vodafone Idea—India’s third-largest telecom operator—declined nearly 10%, closing at ₹6.71, after Minister of State for Communications Chandra Sekhar Pemmasani stated that the government is not considering any relief for the company concerning its Adjusted Gross Revenue (AGR) dues.
Vodafone Idea had submitted a representation to the government seeking a waiver of interest, penalty, and interest on penalty, which was denied. The company also approached the Supreme Court regarding the AGR issue; however, the apex court directed the telco to engage with the government, deeming it a policy matter. In its affidavit before the Supreme Court, Vodafone Idea stated that it would not be able to survive without government support and requested relief. The company’s AGR liability, as of the June 2025 quarter, stood at approximately ₹75,000 crore. It is required to pay this liability in six equal instalments of ₹18,000 crore each, starting from March 31, 2026, after the moratorium period ends.
For the quarter ended June 30, 2025 (Q1 FY26), Vodafone Idea reported a consolidated net loss of ₹6,608 crore, compared to a loss of ₹6,426.7 crore in the same period last year. The increased loss was primarily due to a rise in finance costs.