Vodafone Idea Eyes SBI-Led Consortium for Rs 45,000 Crore Capex
Vodafone Idea is seeking debt capital from an SBI-led consortium to fund its Rs 45,000 crore network expansion plan. The company has already secured initial funding and placed orders for network equipment.
Key takeaways
- Vodafone Idea is in discussions with an SBI-led consortium for funding its Rs 45,000 crore network expansion plan.
- The company has already secured Rs 6,400 crore in initial funding and placed orders for Rs 9,000 crore in network equipment.
- Vi plans to deploy approximately 3,500 4G sites per month and expand its 5G network to over 200 cities in the next two quarters.
- The telecom operator reported a 10.2% year-on-year increase in average revenue per user (ARPU) to Rs 195 in Q1 FY27.
- The company aims for double-digit revenue growth and triple cash EBITDA over the next three years.
What Happened
Vodafone Idea (Vi) is in discussions with an SBI-led consortium of public sector banks, along with Indian private banks and foreign lenders, to secure debt capital for its Rs 45,000 crore capital expenditure plan. This plan is intended for network expansion over the next three years, starting September 2024.
The telecom operator has already raised Rs 6,400 crore as a first tranche of funding, which included Rs 1,183 crore from warrants and debt proceeds from external commercial borrowings and Indian private banks. Additionally, Vi has placed orders worth approximately Rs 9,000 crore for network equipment, with Rs 1,930 crore already deployed in the June 2026 quarter. The company aims to deploy the remaining capex within the next two quarters, focusing on deploying around 3,500 4G sites per month.
Vi has also stated its intention to complete its 4G rollout across 17 key circles within approximately 18 months and expand its 5G network to over 200 additional cities in the next two quarters. During the first quarter of FY27, Vi reported a narrower loss, supported by an increase in average revenue per user (ARPU) to Rs 195, a 10.2% rise from the previous year. The company's 4G and 5G subscriber base grew by approximately 2% year-on-year to 13 crore.
Background
Vi has faced challenges with a declining subscriber base since its formation in 2018 through the merger of Vodafone India and Idea Cellular. This decline was attributed to aggressive pricing from competitors and the company's inability to invest in network expansion due to a cash crunch. The company's customer base has reportedly halved since the merger, though the June 2026 quarter marked the first instance of subscriber base growth since its inception.
Key Facts
- Vodafone Idea aims to secure debt capital from an SBI-led consortium for its Rs 45,000 crore capex plan.
- The company has already raised Rs 6,400 crore as an initial tranche of funds.
- Orders worth approximately Rs 9,000 crore have been placed for network equipment.
- Vi plans to deploy around 3,500 4G sites monthly and expand 5G to over 200 cities in two quarters.
- Average revenue per user (ARPU) increased by 10.2% year-on-year to Rs 195 in Q1 FY27.
- The subscriber base grew by approximately 2% year-on-year to 13 crore for 4G and 5G services.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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