Promoters weigh equity infusion into Voda Idea
MUMBAI: Vodafone Group Plc and Aditya Birla Group are considering equity infusion into Vodafone Idea Ltd after the government announced a raft of relief measures for India’s struggling telecom firms, two people aware of the discussions said.
The development marks a dramatic shift in the stance of Vodafone Idea’s two biggest shareholders, who had earlier ruled out any fresh investments in the Indian telecom operator, citing adverse regulatory and business environment, the people said, requesting anonymity.
“There is a rethink among the two promoters around investing, although these are still early days,” said one of the two people cited above. “The viability of Vodafone Idea has improved after the moratorium on adjusted gross revenue and spectrum charges were announced last week. The promoters feel bringing in fresh equity will add to investors’ confidence.”
While Vodafone Idea does not require funds immediately, it may need to raise funds from external investors later, and raising equity at the current valuations may cause excessive dilution of their stakes, the second person said. “A fresh round of equity will boost investor confidence, the promoters feel,” the person added.
An email sent to Aditya Birla group did not elicit a response.
Over the past year, the company tried unsuccessfully to raise funds from outside investors because of its deteriorating financial condition and uncertainty about whether the government will announce measures to help the cash-strapped telco. Vodafone Idea had announced a plan to raise at least ₹25,000 crore in September last year.
Analysts said that some of the investors’ worries have been addressed by the measures announced by the government.
Vodafone Group owns 45% of Vodafone Idea, and the Indian promoter group, which includes Kumar Mangalam Birla and Aditya Birla Group firms, holds a 26% stake. Vodafone Idea’s current market value is ₹31,000 crore. They have to repay ₹9,000 crore of loans to banks before the end of this fiscal, including ₹5,000 crore of non-convertible debentures.
NEW DELHI: Cars24 Services, an online marketplace for used cars and two-wheelers, has raised $450 million in a new funding round led by Softbank Vision Fund 2, DST Global and Falcon Edge.
The Series F equity round of $340 million also saw participation from Tencent and existing investors Moore Strategic Ventures and Exor Seeds. It has nearly doubled Cars24’s valuation to $1.84 billion from $1 billion last November.
The fundraise included debt of $110 million from multiple financial institutions, according to a company statement.
Cars24 plans to use the fresh capital to deepen its presence in the United Arab Emirates and Australian markets Demand for used vehicles has been rising in India since the Covid outbreak as fear of infections prompts more people to opt for personal mobility. This has also turned investor attention towards this segment.