$1-bn equity bid for Vodafone Idea

New Delhi: Facing a cash crunch, Vodafone Idea has secured an equity commitment of $1 billion (Rs8,300 crore) from investors. The telecom company received a ‘soft commitment’ from investors, which also includes funds committed from promoters as well, according to people aware of the development. The company aims to use the funds to pay vendors and towards 4G and 5G capital expenditures.

Vodafone Idea’s promoters include Aditya Birla Group and Vodafone Group, which hold 18.1 per cent and 32.3 per cent stakes, respectively. The government, which owns nearly 33 per cent stake in the telecom company, is unlikely to participate in the fundraising, according to sources.