Is a $6 billion US investment really coming to Vodafone Idea? Here’s what the company says

Vodafone Idea (Vi) on Monday said it continues to explore various options to raise funds, but clarified that there is currently no proposal under consideration by its board requiring disclosure as reported by sections of the media.

The clarification came after media reports claimed that US-based private equity firm Tillman Global Holdings (TGH) was in talks to invest up to USD 6 billion in the cash-strapped telecom operator and take operational control.

In a filing to the BSE and NSE, the telecom firm said that any report of a specific investment proposal would be disclosed to the stock exchanges as per regulatory requirements.

“The Company keeps exploring various opportunities and options to raise funds within the authorizations given by the Board. As and when such proposals are considered by the Board of Directors of the Company that warrant disclosures, the Company complies with the disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the statement said.

“Currently, there is no proposal being considered by the Board that requires disclosure as reported by the media,” it added.

Vodafone Idea reiterated that it will continue to comply with regulatory norms and keep stock exchanges informed of all price-sensitive information.

According to a report by The Economic Times, TGH is in advanced discussions to invest USD 4–6 billion in Vodafone Idea, contingent upon the government providing a relief package covering the telco’s liabilities, including adjusted gross revenue (AGR) dues and spectrum payments.

The report also said that if the deal materialises, TGH could become the new promoter of Vodafone Idea, taking over control from the existing shareholders Aditya Birla Group and UK’s Vodafone Group, while the Indian government, which currently holds nearly 49%, would remain a passive investor.

Vodafone Idea, burdened by high debt and mounting losses, has been struggling to raise capital to strengthen its network and compete with rivals Reliance Jio and Bharti Airtel.

The telco raised ₹24,000 crore last year through equity offerings but has yet to secure the planned ₹25,000 crore in debt funding.

As of September, the government holds 48.99% in Vodafone Idea, while the Aditya Birla Group and Vodafone Group own 9.50% and 16.07%, respectively.

Shares of Vodafone Idea jumped 14% to an intraday high of ₹9.96 apiece on Monday, November 3, after the Supreme Court clarified that the government is free to consider granting relief on both the additional AGR dues and the reassessment of existing dues.