Vodafone Idea has pinned hope on its target to triple cashflow, as well as on new loans, tax refunds and fresh capital infusion from promoters to generate over Rs 1 lakh crore cash required in the next three years.
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The company in the filing to stock exchanges stated that its board in a meeting on Monday approved the “allotment of 430 crore warrants to Suryaja Investments Pte Ltd (an Aditya Birla Group entity and a member of the Promoter Group) for cash at an issue price of Rs 11 per warrant, against receipt of 25 per cent of the issue price i.e. Rs. 2.75 per warrant aggregating to Rs 1,182.50 crore”.
Each warrant is convertible into, or exchangeable for, one fully paid-up equity share of the Vodafone Idea at face value of Rs 10 at a premium of Re 1 each, which may be exercised in one or more tranches during the period commencing from the date of allotment of the warrants until expiry of 18 months by payment of the remaining 75 per cent of the issue price against each warrant.
As of March 31, 2026, deferred payment obligation (including interest accrued but not due) on Vi stood at Rs 1,27,360 crore towards the spectrum fee and Rs 25,254 crore towards AGR.
The company is in discussion with all financial institutions, including banks, to raise funds.Vodafone Idea (Vi) aims to spend Rs 45,000 crore in capex to improve its network and remain competitive in the market. Besides, the company has a spectrum liability of Rs 49,000 payable over the next three years and another Rs 5,000-6,000 crore to service debt.
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Bofa Global Research said that the company has to make repayments of Rs 49,000 crore over the next three years, increasing from around Rs 7,000 crore in the first year to Rs 15,000 crore in the second, and Rs 27,000 crore in the third year.
“On the spectrum payout, I think right now we are not looking at any kind of change or adjustment in the spectrum payout,” Mehta said.
The company, on Saturday, posted a consolidated net profit of Rs 51,970 crore – its first in about six years, for the March quarter of FY26, mainly due to relief in statutory liabilities.
Vodafone Idea’s operational metrics, however, show a loss of around Rs 5,515 crore during the reported quarter and Rs 24,059 crore in FY26 before exceptional items comprising relief on adjusted gross revenue (AGR).
The government has reduced Vi’s AGR (adjusted gross revenue) dues to Rs 64,046 crore from Rs 87,695 crore, but the spectrum dues remain unchanged.
The instalment payable against these deferred payment obligations on Vi, as scheduled by March 2027, is Rs 7,076 crore.
Bofa Global Research said that the company has to make repayments of Rs 49,000 crore over the next three years, increasing from around Rs 7000 crore in the first year to Rs 15,000 crore in the second, and Rs 27,000 crore in the third year.