Vodafone Idea in talks to raise $2 billion from Oaktree Capital, others: Report

(Image: Reuters)

Vodafone Idea Ltd is reportedly in talks to raise at least $2 billion from a consortium of investors, including Oaktree Capital Management and Varde Partners.

The consortium, led by Oaktree, has offered $2-$2.5 billion to the telco, which owes over Rs 50,000 crore to the Department of Telecommunications (DoT) as AGR dues, Hindustan Times reported.

The board of Vodafone Idea had in September approved fundraising up to Rs 25,000 crore via a mix of instruments. The company is looking to raise funds, in one or more tranches, via issuance of Global Depository Receipts (GDRs), American Depository Receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures and warrants.

Spokespeople for Vodafone Idea, Oaktree and Varde Partners declined to comment, the report said.

The Supreme Court has given telecom companies 10 years to clear their pending AGR dues in annual instalments, starting from April 2021.

However, the top court also instructed the companies to pay upfront of 10 percent of the balance dues by March 31, 2021. VIL has made payment of about Rs 7,850 crore so far towards its statutory dues.

VI is also planning to increase its tariffs by 15-20 percent by the end of 2020 or early 2021 in a bid to increase its revenue. On October 31, Vi's CEO Ravinder Takkar said the telecom major will not shy away from raising prices and setting a precedent for the industry.

Vodafone Idea saw losses reduce to Rs 7,218 crore in the September quarter. The company had posted a loss of Rs 50,897.9 crore in the same quarter of the previous fiscal.