New Delhi, June 1 (Reuters) – American retail giant Amazon and some investors are in talks with Aditya Birla Group to invest up to Rs 20,000 crore on hard-to-buy Vodafone Idea.
Sources said the sale proceeds will be used to bid for the upcoming 5G spectrum auction and capital expenditure for the roll-out of services by the end of the year.
Aditya Birla Group is in talks with private equity investors seeking to enter the telecom sector in India apart from Amazon.
“We are in talks with many investors. The announcement of the new investors will be released soon. Investors are investing up to Rs 10,000 crore in equity.
29,870 crore worth
An Aditya Birla Group and an Amazon spokesman declined to comment. Shares of Vodafone Idea were up 0.4% on Monday. The stock rose 4.14% to Rs 9.3 a share. As of Monday, the company had a net worth of Rs 29,870 crore. Investors have raised questions about the role of the government once the company has taken a stake in the company instead of its dues.
Decision on January 10th
The Company has decided that the effective date is January 10 to calculate the Net Present Value (NPV) of interest to be converted into equity by the government. The interest liability on moratorium period is Rs 16,130 crore towards NGV (adjusted gross revenues) and deferred spectrum liabilities. Is.
Help for Telecom
“Investors will come in after the government completes the stake acquisition process,” the source said.
Helping companies financially
In March this year, the Department of Telecommunication directed the company to return the financial bank guarantees associated with the previous spectrum auction. Bank guarantees worth Rs 16,000 crore have been returned so far. Thus helping companies financially.
4,500 crore investment
On the other hand, Aditya Birla Group and Vodafone Idea PLC have invested Rs 4,500 crore in Telco through the newly preferred equity infusion. Shares were issued to promoters at 13.3 s per equity share. This includes Vodafone Idea at Rs 3,375 crore. Aditya Birla Group has raised Rs 1,125 crore. This is followed by the combined shares of the promoters. Is 74.99. After converting interest into equity, the government’s shares are up to 1%. 33 is expected to become.
Eager to invest in 5G services
After successful testing in Pune and Gandhinagar, the company is keen to invest in 5G technology based services. After the 5G price negotiations, the Indian Telecom Regulatory Authority has received many requests from the telecom industry. In addition, the 5G spectrum price is estimated to be around Rs. 36 decreased daily. As per the previous auction, it was worth Rs. Troy recommends making spectrum payments up to spectrum validity compared to a 50 percent upfront payment. This is another step to help operators manage their cash flow efficiently.
