/vnd/media/agency_attachments/bGjnvN2ncYDdhj74yP9p.png)
/vnd/media/post_banners/wp-content/uploads/2016/08/The-online-lending-platform-FlexiLoans-Technologies.jpg)
The second quarter's net debt for Vi is Rs 2.2 trillion. Vi paid back a short-term loan to SBI in the amount of Rs 2,700 crore in September. Vi owed banks and other financial institutions a total of Rs 23,400 crore as of Q1 FY23. Dues decreased to Rs 15,080 crore in Q2. It must pay its debtors Rs 9,300 crore by September 2023.
Vodafone Idea(Vi) has reportedly asked the State Bank of India (SBI) for a loan of Rs 15,000-16,000 crore to cover its need for capital expenditures and pay for the procurement of equipment for rolling-out its 5G network, according to a report by ET Telecom.
"The team is in discussions with Vi, but they are still in the early stages. Clarifications regarding the timing of the government's conversion of the telecom operator's interest liability into equity as well as its business plans have been requested," a bank official informed ET.
The second quarter's net debt for Vi is Rs 2.2 trillion. Vi paid back a short-term loan to SBI in the amount of Rs 2,700 crore in September. Vi owed banks and other financial institutions a total of Rs 23,400 crore as of Q1 FY23. Dues decreased to Rs 15,080 crore in Q2. It must pay its debtors Rs 9,300 crore by September 2023.
According to the article, the negotiations have been ongoing for more than a month, and SBI is awaiting clarification on the government's potential ownership stake in Vi. Only after receiving clarification on Vi's plans, is the bank anticipated to approve the deal.
As per the report, the uncertainty surrounding the government's handling of the accured interest on Vi's unpaid outstanding adjusted gross revenue (AGR) dues is the primary reason for the delayed infusion by possible investors. The fees could be converted by the government into stock. But, before moving further with the conversion, it is also expecting Vi's declaration of plans to contribute funds.
In case of the debt being converted to equity, the government may end up owning up to 33 percent of the business. However, because Vi has been careful to reduce its debt, the potential lenders happen to be in Vi's side.