Vodafone Idea fund raise plan unlikely to include funding from Hindalco, Grasim: Exclusive

The funds raised will mainly be used to meet Vodafone Idea's capital requirements to pay government dues, capex for network expansion and for 5G investments.

“The promoter’s decision of infusing capital is likely to inspire confidence in the investors.” A source indicated. On August 14, Vodafone Idea had mentioned that the promoter group will infuse ₹2,000 crore in the telecom operator if required. The management had later clarified that the fund infusion is likely to be completed by the end of the December quarter.

Aditya Birla Group or Vodafone Idea's spokespersons were unavailable for comment on CNBC-TV18's queries regarding the fund raising plans.

Sources indicate that the Aditya Birla Group had emphatically clarified to investors that the recently concluded rights issue of Grasim will not be used for any funding requirement of the telecom business.

Analysts had speculated that Hindalco’s large fund raise via the US listing of wholly-owned subsidiary Novelis may be used for group’s funding requirement but sources clarified that it will not be used for infusion of funds into Vodafone Idea.

Shares of Vodafone Idea are at the lowest point of the day, currently trading 2.3% lower at ₹17.15.