Telecom company Vodafone Idea, which is facing financial crisis, may get strong funding. Consortiums of US investment firms Oaktree Capital and Varde Partners have offered Vodafone Idea an investment of between $ 2–2.5 billion, ie 15,000 crore to 18,500 crore rupees. According to a Bloomberg report, Oakry Capital’s consortium is planning to invest in Vodafone Idea through hybrid debt papers.
According to the report, the Vodafone Group’s Indian business could get an investment of at least $ 2 billion (14.85 thousand crore rupees). American investment firm Oaktree Capital is preparing proposals for investment of Rs 14.85 thousand crore to Rs 18.56 thousand crore in Vodafone Idea. Let me tell you that in September, Vodafone Idea had talked about raising 25,000 thousand crore rupees from the sale of shares and debt. For this, the company was talking to several investors.
Company talking to Verizon Communications
Vodafone Idea wants to compete in India with telecom companies like Jio and Airtel, so it is raising funds. Vodafone Idea is also negotiating with America’s largest telecom company Verizon Communications (Verizon Communications) and Amazon (Amazon) for $ 4 billion in funding.
Shares climbed by 4.4%
Vodafone Idea shares rose as much as 4.4% in the stock market on Thursday afternoon after the news that Octree Capitals invested at least $ 2 billion in Vodafone Idea. However, as the day progressed, its stock started declining again and finally ended at Rs 9.27 per share, up 0.76%. Let us tell you that since September 3, the company’s stock has slipped 25%.
Continuing losses since the 9th quarter
The company has been incurring losses continuously for the past nine quarters. Since the merger of Vodafone Group and Idea in 2017, the company has not been frozen any year. The financial position of Vodafone Idea is extremely critical. The company has a total debt of Rs 1.14 lakh crore. The major reason for this is the company owes AGR Rs 50,000 crore.