Vodafone Idea shelves original plans, eyes Rs 10,000 crore NCD  

Telecom major Vodafone Idea has put on hold its plan to raise Rs 25,000 crore through the sale of hybrid securities to foreign funds, and might instead borrow capital to refinance its debt.

The company will likely borrow the funds using promoter guarantees, Mint reported.

Vodafone Idea might also revamp its current operations in some telecom circles in order to save fixed costs, the report said.

Moneycontrol could not independently verify the story.

“The company is in talks with lenders to raise close to Rs 10,000 crore by issuing papers such as non-convertible debentures,” a source told Mint.

The fundraising plan has been delayed due to Vodafone Idea’s low share price and differences over the telecom company’s valuation, the report said.

“Promoters Aditya Birla Group and UK’s Vodafone Group Plc believe that the business environment is set to improve considerably for the company, enhancing shareholder value,” the source said.

“They believe equity dilution at the current market price does not do justice to the intrinsic value of the business,” the source added.

Aditya Birla Group and Vodafone Group had not yet responded when contacted by the paper. MoneyControl