Vodafone Idea’s share price gained momentum in Tuesday’s trading session, rising 1% to cross the ₹12 mark on the NSE, as investor sentiment improved following clarity on the company’s recent fundraise.The rally came after telecom operator Vodafone Idea (Vi) raised ₹3,300 crore through a bond sale, which saw strong participation from non-banking financial companies (NBFCs), mutual funds and foreign investors. The successful fundraise eased concerns around the company’s near-term funding needs and boosted confidence among market participants.
Tata Group’s NBFC arm, Tata Capital, emerged as a key investor, committing around ₹500 crore to the bond issue. Other major financial players also showed strong interest, with JM Financial Credit Solutions, Aditya Birla Capital and Hero Fincorp each investing approximately ₹400 crore. Nomura Capital also participated in the fundraise, investing across both tranches of the bond offering. The bonds were privately placed by Vi’s wholly owned subsidiary, Vodafone Idea Telecom Infrastructure, and the fundraise was split into two secured tranches, according to a report by The Economic Times.The larger Series A tranche of ₹3,000 crore carried an interest rate of 12%, while the smaller Series B tranche of ₹300 crore offered a 7% coupon. Both have a tenure of about 21 months and include a call option that can be exercised after one year.
The funds will be used to repay the debt-ridden telco's business consideration following the transfer of its fibre assets to the infrastructure arm. The money will also support the company’s capital expenditure plans and overall business growth. Recently, the Supreme Court observed that the government could consider Vi’s request for relief on adjusted gross revenue (AGR) dues of about ₹9,500 crore. In May, the company received board approval to raise up to ₹20,000 crore through equity or debt. Earlier in April, the government converted a portion of Vi’s spectrum dues into equity, raising its stake in the telecom operator to 49%.The telecom operator's total AGR dues stand at around ₹83,400 crore. The company is expected to begin annual payments of nearly ₹18,000 crore from March 2026. Including interest and penalties, its total liabilities to the government are estimated at close to ₹2 lakh crore.