Are good days coming for Vodafone Idea? The company will raise funds from here and not from banks, keep an eye on the stock

News Topical, Digital Desk : Telecom company Vodafone Idea (Vi) is planning to raise funds for its capex from non-banking sources. The company's CEO, Akshay Mundhra, said in the June quarter earnings call on August 18 that negotiations with banks are stalled due to uncertainty over the Gross Adjusted Revenue (AGR) dues. Mundhra said that although discussions with banks are progressing, it may take time to finalize it.

The company has urged the government to resolve the AGR issue before the deadline of March 2026 so that the confidence of banks can increase and financial support can be obtained.

Emphasis on non-banking funding
Mundhra said that the company is focusing on raising a smaller amount instead of the entire fund of Rs 25,000 crore, so that the capex cycle continues. He said, "We are looking for funding from non-banking sources, which can be available in a short time."

Government support and AGR Mundhra said that after the government converted the due amount of Rs 36,950 crore into equity and improvement in credit rating, talks with banks have started again. He said, "Banks want clarity on AGR. The government is our biggest shareholder and we are confident that a solution to AGR will be found." He mentioned previous government support such as stopping spectrum installments in 2019, the reform package of 2021, and converting the amount due in 2023 and 2025 into equity. 

Capex and network expansion Mundhra said Vodafone Idea will do a capex of Rs 5,000-6,000 crore in the first half of FY26, which will be completed by September. Despite the delay in 5G rollout, the competition of 4G networks has increased. He said, "Our current investments have put us in a better competitive position." In this quarter, the company is focusing on 5G rollout and installation of existing equipment. Some sites are being removed, while the capacity of existing sites is being increased. Mundhra said that a big increase in the number of sites is not expected in the short term. New funding will be required for this. The company will grow modestly from internal cash, but new funds are necessary to reach 2-2.5 lakh towers.

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