By Aditya Raghunath
Investing.com — A report in The Economic Times said that cash-strapped telecom company Vodafone Idea Ltd (NS:) is planning to sell off a bunch of its assets to raise $1 billion. The company has to pay Rs 22,500 crore between December 2021 and April 2022.
As of March 31, 2021, the company had Rs 350 crore of cash on hand. It reported a loss of Rs 6,985.1 crore for the March 2021 quarter.
According to the report, Vodafone Idea is planning to sell off its fixed line broadband subsidiary (YOU Broadband), optic fibre unit and data centres businesses.
Multiple media reports have said that the company has been trying to raise Rs 25,000 crore over the last year, and has explored both debt and equity options, but it has not met with any success.
On July 4, Investing.com had reported how in an earnings call with analysts, Ravinder Takkar, CEO of Vodafone Idea, said, “On fund raising, we are currently in active discussion with potential investors.”
Takkar said that the company is not considering a plan B in case the funding strategy doesn’t work out. He said, “I don’t think there is any reason to start creating Plan B because funding is not happening. We are confident that funding will take place in the coming weeks.”
The company’s stock dropped 17% from Rs 10.6 on June 25 to Rs 8.8 on July 2.