Vodafone Concept (Vi) acquired Rs 2000 crore from HDFC Financial institution, a number one monetary establishment in India. The fund will assist the telco meet all of the overdue license charges and 5G spectrum funds, in accordance with an ET report. HDFC Financial institution has given Vi this mortgage for 2 years, and the funds have been offered to the telco in mid-September 2023. Vodafone Concept has paid about Rs 1700 crore towards spectrum utilization cost (SUC) and Rs 350 crore towards previous license payment (LF), the report added.
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Vodafone Concept wrote a letter to the telecom division on October 31 saying that that they had already made a ten% fee of LF and SUC on October 13, 2023, and the remaining quantity for the quarter ending September 2023 shall be paid by the top of December 2023 quarter. The report mentioned that HDFC has sounded off the primary lenders to the telco, which incorporates SBI, that in case of any points with Vi’s funds sooner or later, the reimbursement to this mortgage account shouldn’t be impacted.
The cash-strapped telecom operator has advised the federal government that it’s in advanced-stage discussions with potential traders to boost funds and is hopeful that will probably be concluded earlier than the top of the December 2o23 quarter. The telco is to this point sticking with its fee plans. If it continues to take action, the telecom division won’t invoke the financial institution ensures. Nevertheless, if there are any points with the funds, then the federal government will encash the ensures.
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Vi has paid off the second instalment (Rs 1700 crore) for the 5G spectrum public sale it acquired final 12 months. The report mentioned that as per bankers, the difficulty just isn’t with the financial institution debt for Vi. The telco has been paying that, however the challenge is with the federal government or the statutory debt. That’s the solely space the place solvency issues of Vi come up.
The Rs 2000 crore raised by the telco might pose as a confidence booster for the traders that Vi is at the moment in talks with. Will probably be fascinating to see how the telco navigates by means of this example.
