Vodafone Idea ₹3,300 Cr Bond Sale: Tata Capital, JM Financial, Aditya Birla Capital Among Key Buyers

Telecom operator Vodafone Idea (Vi) has raised ₹3,300 crore through a bond sale, drawing strong interest from non-banking financial companies (NBFCs), mutual funds and foreign investors. Tata Group’s NBFC, Tata Capital, invested around ₹500 crore in the issue. JM Financial Credit Solutions, Aditya Birla Capital and Hero Fincorp each committed about ₹400 crore. Nomura Capital also took part, 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.

The successful bond sale reportedly highlights a growing appetite among NBFCs and mutual funds for higher-yielding debt, at a time when banks remain cautious due to exposure limits and concerns over asset quality.

Despite recent government relief measures, including moratoriums and the conversion of some dues into equity, the telco continues to rely on asset monetisation and structured debt to meet its funding needs. The company is also in talks with lenders to secure long-term financing for future investments.

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.