Vodafone Idea to Raise Rs 20,000 Cr as Losses Deepen

Vodafone Idea’s board of directors has approved a fund raise of up to 20,000 crore at a time when the telecom giant’s loss has increased and adjusted gross revenue (AGR) dues have further threatened its financial health. The telecom giant’s net loss for the March quarter increased to Rs 7,166 crore in the fourth quarter of the financial year 2025 from Rs 6,609 crore in the previous quarter. 

The fund raise is subject to regulatory and shareholders' approval and is likely to be done in one or two tranches. The board is yet to decide the route via which the funds will be raised, the company said in a statement on exchange filing on May 30. 

“Subject to the approval of shareholders’ and/ or other requisite regulatory/ statutory approvals, raising of funds in one or more tranches...which may or may not be listed upto an aggregate amount of Rs 20,000 crores,” said the company.

Also Read: Another Bailout, Same Headwinds: Can Vodafone Idea Break the Cycle?

The company has also reportedly resumed talks with banks to raise debt of around Rs 22,000 crore for capex use. The telecom sector major has planned to infuse Rs 50,000-Rs 55,000 crore in capital expenditure via FY28. 

“While banks had not factored in any relief on Vodafone Idea’s AGR dues, they have been awaiting greater clarity on the final liability before firming up fresh lending of over Rs 22,000 crore...Lenders were closely watching for resolution on the total AGR burden, even as they evaluated the company’s proposal to raise bank funding for capex use,” the Economic Times reported, citing a source. 

The move by the company is to revive itself amid mounting financial troubles coupled with subscriber loss and decreasing market share. Apart from reviving itself, the company has planned 4G coverage expansion and the rollout of 5G services across India and compete against rivals like Mukesh Ambani-led Reliance Jio and Sunil Bharti Mittal-led Airtel.