Vodafone Concept Ltd is in talks with banks to both refinance a portion of its loans or elevate contemporary debt to repay bondholders, mentioned two officers conscious of the matter.
The corporate must repay ₹6,400 crore to bondholders beginning December by way of March. That is along with the ₹14,000 crore of fairness that the promoters are more likely to infuse into the corporate, one of many two officers mentioned, requesting anonymity.
In accordance with Care Scores, Vodafone Concept has financial institution amenities price ₹37,562 crore and long-term debentures price ₹7,500 crore.
On Monday, the corporate paid principal price ₹1,500 crore and ₹110 crore in curiosity on its 7.57% unsecured redeemable non-convertible debentures on account of banks.
In a inventory change submitting, Vodafone Concept mentioned it paid the principal quantity, together with curiosity for sure debentures. These debentures had been due on 13 December, and the fee was made on time on Monday night, it mentioned, with out elaborating.
In accordance with one of many two officers cited above, Vodafone Concept is seeking to submit a working capital plan to banks by December finish.
The Financial Instances reported on Thursday that the telecom firm is concentrating on a fourfold bounce in annual capital expenditure to $2 billion from an estimated $500 million at present.
Vodafone Concept has been struggling to lift capital from present or new traders.
Kumar Mangalam Birla, who lately stepped down as the corporate’s chairman, and UK’s Vodafone Group Plc collectively maintain near 70% in Vodafone Concept.
The cash-strapped telco, which was on the cusp of economic insolvency, acquired a serious aid when the federal government allowed it to defer funds on some authorities dues for 4 years. The federal government has additionally achieved away with necessities for a number of financial institution ensures, permitting telcos to supply a single financial institution assure for various licensed service areas. As well as, for future spectrum auctions, telcos gained’t be required to supply financial institution ensures to safe instalment funds, a step that’s more likely to cut back their debt burden.
Vodafone Concept’s gross liabilities, together with regulatory dues, stood at round ₹1.9 trillion as of 31 March. The corporate owes a complete of ₹48,000 crore to eight banks led by State Financial institution of India. Of this, borrowings quantity to ₹23,000 crore, and the remainder is within the type of financial institution ensures.
In accordance with the most recent monetary experiences, as of 30 September, the corporate’s whole debt is at ₹1,94,778 crore. The corporate is scheduled to repay ₹9,732 crore price of debt by 30 September 2022.
Care Scores mentioned in a report on 13 August, “The adequacy of obtainable funds to fulfill debt obligations stays to be seen. With a detrimental internet price of the corporate as of 31 March 2021, there’s very restricted headroom for Vodafone Concept to incur any capital expenditure and lift funds to assist its operations.”
The ranking company has a ‘B-’ ranking for Vodafone Concept which suggests credit score watch with detrimental implications.
Supply: Live Mint