Shares of Vodafone Idea (Vi) saw notable gains in early trading on Friday, December 19, following the company’s announcement on Thursday that its subsidiary, Vodafone Idea Telecom Infrastructure (VITIL), had successfully raised ₹3,300 crore through the issuance of non-convertible debentures (NCDs). The stock surged as much as 3.53% to ₹11.70 on the NSE.
The funds raised will be utilized by VITIL to repay Vodafone Idea’s payment obligations, helping to strengthen the company’s capital expenditure and support business growth. NCDs are debt instruments that cannot be converted into equity and typically offer fixed interest. The issuance received strong demand from a diverse group of prominent investors, including large non-banking financial companies, foreign portfolio investors, and alternative investment funds.
Abhijit Kishore, CEO of Vodafone Idea, said the successful fundraise underscores investor confidence in the company’s strategy and long-term vision. “This capital strengthens our momentum as we continue to scale our network and enhance services for our customers,” Kishore added. He also noted that discussions with banks regarding long-term debt to support further capital expenditure are ongoing. The government currently holds a near 49% stake in VIL. Despite the positive fundraising news, Vodafone Idea has faced financial challenges, reporting a loss of ₹12,132 crore in the first half of the current fiscal.
As of September 30, its net worth stood at a negative ₹82,460 crore, with total debt amounting to ₹2.02 lakh crore. However, the company has shown improvement by narrowing losses on a year-on-year basis. So far in 2025, Vodafone Idea shares have gained over 45%, and over the past 12 months, the stock has risen 51%, reflecting growing investor confidence in the debt laden telecom firm.