Vodafone Idea's shares skyrocket amid funding news
Vodafone Idea is looking to borrow ₹25,000 crore (about $2.9 billion) from a group of lenders led by SBI.
The main goal? Upgrade its 4G and 5G networks so it can actually compete with Jio and Airtel.
The loan would likely be split between Indian and foreign banks, with a payback period of around 10 years.
Government may extend payback period for dues
The government now owns nearly half (48.99%) of Vodafone Idea after converting some of the company's dues into equity earlier this year.
To help out further, it might let Vodafone Idea pay back what it owes over 20 years instead of just six—giving the company more breathing room as it deals with ₹84,000 crore in total dues.
Investors optimistic, stock price shoots up
All this talk of fresh funding and government backing has made investors pretty optimistic—Vodafone Idea's stock price shot up over 15% in just four days, hitting ₹7.55 per share on the BSE.
Backed by Kumar Mangalam Birla
Backed by Kumar Mangalam Birla, Vodafone Idea wants to use these funds to stop losing subscribers and finally catch up on network upgrades.
After years weighed down by debt and massive government dues, the company is hoping these moves will help turn things around in India's tough telecom scene.