Vodafone Idea Plans to Raise Debt, to Tap Global and Local Lenders

According to Bloomberg report, Vodafone Idea is exploring ways to raise debt financing of up to ₹40,000 crore after confirming government relief related to AGR (Adjusted Gross Revenue) dues.  

The move comes as the telecom operator navigates cash flow challenges amid rising competition and annual spectrum dues. 

Debt Raising Efforts Following AGR Dues Relief 

Vodafone Idea has officially confirmed receiving relief from the Department of Telecommunications (DoT) for its AGR-linked dues. However, the telecom firm is still required to make spectrum-related payments of approximately ₹15,000 crore annually.  

Given this recurring obligation, Vodafone Idea is planning to secure funds through both domestic and international lenders to support its operational and strategic needs. 

The proposed debt raise, which could range between ₹30,000 crore-₹40,000 crore, is expected to be used in part to enhance the company's network capabilities. This could help the firm better manage the ongoing competitive pressures from Bharti Airtel and Reliance Jio. 

Discussions with Global Investors and Other Funding Options 

In addition to debt, Vodafone Idea is also in ongoing discussions with potential equity investors. One such conversation pertains to a possible stake sale to New York-based Tillmann Global Holdings.  

This indicates that while the primary focus currently remains on debt, equity financing remains an open possibility. 

According to reports, the scope of fund utilisation would largely target network improvement and modernisation efforts. This could assist in enhancing customer experience and retention as the operator seeks to stabilise and scale its services. 

Read More: Vodafone Idea Share Price Jump 9% After DoT Signals AGR Dues Relief! 

Operational Challenges and Capital Needs 

Vodafone Idea is facing rising pressure on its cash flow due to intense sector competition and high annual liabilities.  

The firm has acknowledged that despite the AGR relief, its spectrum dues continue to demand significant outlay. These factors are contributing to the urgency in mobilising fresh funds and managing financial stability. 

Vodafone Idea Share Price Performance  

As of January 09, 2026, at 3:30 PM, Vodafone Idea share price on NSE was closed at ₹11.26 down by 2.09% from the previous closing price. 

Conclusion 

Vodafone Idea is planning to raise ₹40,000 crore through debt financing after receiving AGR dues relief. The operator plans to utilise the capital for spectrum payments and network improvements, while continuing discussions for potential equity participation. 

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