Vodafone Idea targets to raise up to Rs 40,000 crore by year-end

As far as the fibre optic cable business is concerned, people in the know add that the board has given a nod to going ahead with the sale however it is not happy with the bids that have coming from Brookfield and KKR so far. Hence the management will look out for more financial or strategic investors in the coming months/ weeks.

CNBC-TV18 was the first to report on KKR and Brookfield being in the race for Vodafone Idea's fibre optic cable business.

"The company hopes to get a strategic player to buy out of hundred percent stake in the fibre optic cable business;" said the source. Meanwhile, the company has already gotten Rs 4,000 crore via the merger of Infratel and Indus tower.

While Vodafone Idea has gotten a breather from the Supreme Court on the timeline of paying its AGR dues which cross Rs 58,000 crore, industry watchers believe that it needs a significant capital infusion and clear that reduction strategy clubbed with tariff hike to be able to thrive in this environment.

"We are of the view that VIL may still find it tough to service AGR repayments, and spectrum liabilities unless it is able to raise USD 3-4 billion over the next 18 months and at least take up its ARPUs to INR200. We believe VIL may have to revisit its strategy and consider going regional as it may allow the company to reduce spectrum-related liabilities and lower its overall capex needs. However, we do note that the company has denied such possibilities in the past," says a note by SBI caps securities.