The delay in raising the funds required for repaying the dues of Vodafone Idea has been limiting its operational and financial capabilities. Ashwini Vaishnaw, Vodafone Idea Chief Financial Officer, expressed her concerns over the delay in raising the necessary funds and stated that the situation has been “very difficult” and further delays will be “extremely challenging”.
Vodafone Idea had to pay Rs 53,000 crore to the Department of Telecoms for dues that have accumulated from August 2020 and onwards. The company had announced in January 2021 that it is raising fund to meet these requirements; however, it has not yet met its goal of raising the required amount.
Backed by Veon, Vodafone Idea has managed to raise around Rs 6,750 crore through non-convertible debenture (NCD). It is also looking into other fund raising options like equity investments and debt products. However, according to Vaishnaw, “the fund raising process is taking longer than intended” and many potential investors are still uncertain about investing in Vodafone Idea due to the regulatory uncertainty in the telecoms sector.