Vodafone Idea plans $1.5 bn fundraising

Vodafone Group Plc's India unit is planning to raise about $1.5 billion as it seeks to turn around its fortunes in the country's fiercely competitive wireless market, people familiar with the matter said. Vodafone Idea Ltd is discussing a funding plan that could include a share sale, according to the people, who asked not to be identified because the information is private. It is working with advisers, including New York-based investment bank PJT Partners Inc, as it seeks potential strategic partners to buy stakes, the people said.

The telecom operator is working to identify potential investors in the US, the people said. It could also raise part of the funds through other methods such as an offering of equity-linked securities, one of the people said.

Vodafone Idea plans to discuss the options at a board meeting on Friday. Details of the plan are still being finalied, and the size and structure of the fundraising could change, according to the people.

Vodafone Idea extended gains in Mumbai trading, rising as much as 30 per cent. The stock closed at Rs 12.56 on the BSE, up

26.74 per cent. Shares of Vodafone Idea have fallen about 85 per cent since

2016 the launch of Reliance Jio Infocomm.

Vodafone Idea's fundraising plan comes after the firm won some legal relief earlier this week in a near two-decade payment dispute with the government.

The venture between Vodafone and billionaire Kumar Mangalam Birla's conglomerate has been weighed down by a $7.8 billion bill from the government, eight straight quarterly losses and over $14 billion of debt.

The fine print of a Supreme Court judgment published late on Tuesday showed Vodafone Idea doesn't need to make any immediate payments as a three-judge panel allowed phone operators 10 years to pay a combined $19 bn in back fees.