Vodafone Idea Ltd. received a ₹4,730 crore investment boost from its promoter Aditya Birla Group, as the debt-ridden wireless carrier tries to regain its footing and stay competitive in India’s telecom market, according to a Bloomberg report.
The company reported net income of ₹51,970 crore for its fourth quarter on Saturday, beating analyst estimates on a one-time gain. The equity infusion is critical for the firm’s survival as it races to cut debt and stem market-share losses to deep-pocketed Reliance Jio Infocomm and Bharti Airtel.
Vodafone Idea CEO Abhijit Kishore said more customers are joining than leaving for the first time since February this year, while the company has expanded its 4G coverage to about 48 million people and launched 5G services in 80 cities.
“Our focus is on execution and in ensuring that the momentum only accelerates from here on,” Kishore said.
The Indian government is currently Vodafone Idea’s largest shareholder with a 49 per cent stake, while the British telecom company owns 19 per cent and Kumar Mangalam Birla’s Aditya Birla Group holds a minority stake.
The company has also been in talks with lenders to borrow about ₹35,000 crore. The fundraising comes after the government capped Vodafone Idea’s past spectrum dues at around ₹64,050 crore following a reassessment, trimming almost 27 per cent off the carrier’s liabilities.