Vodafone Idea Subsidiary Raises Rs 3,300 Crore Via NCDs To Boost Capex

Debt-ridden Vodafone Idea on Thursday said its subsidiary VITIL has completed a Rs 3,300 crore fundraise by way of issuing non-convertible debentures.

The fundraiser assumes significance, as the proceeds will be used by VITIL to repay its payment obligation to Vodafone Idea, the company said, adding that this will enable it to bolster its capex and support business growth.

"VI (Vodafone Idea) today announced the successful fundraise of Rs 3,300 crore through issuance of unlisted, unrated, secured non-convertible debentures (NCDs) issued by Vodafone Idea Telecom Infrastructure Ltd, its subsidiary entity," a statement said.

A non-convertible debenture (NCD) is a debt instrument issued by a company to raise capital. It cannot be converted into equity and offer fixed interest.

The fundraiser saw strong interest exceeding NCD issuance from a diversified group of marquee investors, including large non-banking financial companies, foreign portfolio investors and alternate investment funds.

Abhijit Kishore, CEO of VIL, said the fresh fundraise reinforces 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," he said.

Talks related to long-term debt raises to support capex are on with banks, he added.

JM Financial Products acted as the exclusive debt arranger with regard to the fundraising.

Last month, during the company's earnings call, the Vodafone Idea CEO had said the telco is working very closely with the government and expects to come up with the best and long-term solution in the matter of its Rs 78,500 crore adjusted gross revenue dues.

Kishore had also said at that time that the company is engaged with multiple sources, including banks and non-banking finance companies, for fundraising, which also depends on the resolution of the AGR matter for any long-term funding.

The comment came in the backdrop of a favourable order it got from the Supreme Court that has allowed the government to reconsider and take an appropriate decision with reference to the additional AGR demand raised for the period up to the financial year 2016-2017, and comprehensively reassessing and reconciling all AGR (adjusted gross revenue) dues, including interest and penalty.

The government hold nearly 49% stake in VIL.

Vodafone Idea incurred a loss of Rs 12,132 crore in the first half of the current fiscal, and its net worth stood at negative Rs 82,460 crore as on Sept. 30.

The total debt of the company stood at Rs 2.02 lakh crore at the end of the reported quarter.

The company, however, has shown improvement in its financial performance by narrowing losses during the reported quarter on a YoY basis.

VIL's consolidated net loss year-on-year narrowed to Rs 5,524 crore in the second quarter ended September 2025, mainly on account of savings in finance cost on debt from banks and an increase in average revenue per user supported by tariff hike.