Vodafone Idea $3.5B loan, Kumar Mangalam Birla must remain chairman
Business
Vodafone Idea just scored a massive $3.5 billion loan from a group of lenders led by SBI, aiming to help the company rebuild its business and improve its network.
One big catch: Kumar Mangalam Birla needs to stay on as chairman for almost 10 years.
Funds to help Vodafone Idea compete
The funds are meant to help Vodafone Idea compete with rivals like Airtel and Jio by improving its network capabilities.
Recent moves by the government (like converting huge debts into equity and raising its stake to nearly 49%) have also given the company a lift, sending shares up about 40% this year.
As India's third-largest telecom operator, Vodafone Idea is hoping this support will strengthen its place in the market.