Vodafone Idea to Raise ₹4,730 Cr from Aditya Birla Group

New Delhi, May 16 (PTI) Beleaguered telecom operator Vodafone Idea plans to raise Rs 4,730 crore from a Singapore-based entity of promoter Aditya Birla Group, a company filing said on Saturday.

The board of Vodafone Idea (Vi) has approved raising funds through warrants convertible into equity shares.

"The Board of Directors of Vodafone Idea Limited...has inter-alia approved...issuance of up to 430 crore warrants (each convertible into one equity share) to Suryaja Investments Pte. Ltd., Singapore, (an Aditya Birla Group entity and Promoter Group Company), at an issue price of Rs 11 per Warrant, aggregating upto Rs 4,730 Crore on a preferential basis," the filing said.

The 25 per cent of the warrant exercise price shall be payable at the time of subscription of warrants and the balance 75 per cent of the warrant exercise price shall be payable by the warrant holder at the time of exercise of the right attached to warrant to subscribe to equity shares.

The capital infusion from Aditya Birla group comes into the company after its chairman Kumar Mangalam Birla for the second time took the reign of Vi as its non-executive Chairman earlier this month.


Birla's appointment came soon after the government reduced adjusted gross revenue liability on Vi by about 27 per cent to Rs 64,046 crore after reassessing the statutory dues from Rs 87,695 crore freezed by the cabinet on December 31, 2025.

The company has to clear final dues in two sets spread over ten years, and the first payment is due after five years. It will need to pay a minimum of Rs 100 crore annually over four years from FY 2031-32 to FY 2034-35 and the remaining amount in six equal instalments annually from FY 2035-36 to FY 2040-41, the filing said.

Following reassessment, Vi has to pay a minimum of Rs 100 annually over four years between March 2032 and March 2035. The remaining AGR dues have to be paid in equal instalments annually over six years, i.e. between March'36 and March'41 which will be Rs 10,608 crore annually.

The company, however, has to make an annual payment of Rs 124 crore towards AGR dues pertaining to FY2018 and FY2019 from March 2026 to March 2031. These dues were not part of the reassessment.

Analysts see a challenge in Vi's spectrum dues, which remain unchanged.

Bofa Global Research said that the company has to make repayments of Rs 49,000 crore due over the next three years a” rising from around Rs 7000 crore in the first year to Rs 15000 in the second and Rs 27,000 crore in the third year, respectively.