Vodafone Idea Shares Surge 6% Amid ₹35,000 Crore Loan Deal Vodafone Idea (Vi) shares surged 6% on May 19, driven by news of a ₹35,000 crore loan from the State Bank of India (SBI) and a consortium of public, private, and foreign banks. The stock closed at ₹13.45, up 4.59%, reflecting investor optimism about the company’s financial turnaround. CEO Abhijit Kishor confirmed discussions with the SBI-led consortium, stating the loan would accelerate Vi’s expansion plans and stabilize its balance sheet. The loan announcement came after Vi reported its fourth-quarter results, revealing a consolidated net profit of ₹51,970 crore for the period ending March 31. Analysts had expected a loss, but the profit was attributed to a revaluation of the company’s Adjusted Gross Revenue (AGR) liabilities rather than operational performance. However, Vi faced an operational loss of ₹5,515 crore in the quarter, with the full fiscal year 2026 loss standing at ₹24,059 crore. Kishor emphasized that the loan would help Vi meet its capital expenditure (capex) target of ₹45,000 crore over the next three years. This includes ₹25,000 crore in funded facilities and ₹10,000 crore in non-funded facilities. Funded facilities, such as term loans or overdrafts, involve direct bank funding with interest, while non-funded facilities, like bank guarantees or letters of credit, require third-party guarantees in case of default. The loan is critical for Vi’s plan to expand its 4G and 5G networks to compete with Reliance Jio and Bharti Airtel. Kishor stated that the company’s capex would increase significantly, aligning with its ₹45,000 crore investment plan. He noted that the current quarter’s spending would be part of this three-year roadmap, ensuring faster network expansion and customer retention.#state_bank_of_india #bharti_airtel #vodafone_idea #reliance_jio #abhijit_kishor
Vodafone Idea Shares Surge 6% Amid ₹35,000 Crore Loan Deal Vodafone Idea (Vi) shares surged 6% on May 19, driven by news of a ₹35,000 crore loan agreement with a consortium led by State Bank of India (SBI). The stock closed at ₹13.45, up 4.59%, reflecting investor optimism about the financial support. CEO Abhijit Kishor confirmed ongoing discussions with the SBI-led consortium, which includes public sector banks, private banks, and foreign institutions. He emphasized the consortium’s commitment to expedite the loan process, which he said is critical for the company’s financial stability. The loan announcement follows Vi’s quarterly results, which revealed a net profit of ₹51,970 crore for the quarter ending March 31, despite an operational loss of ₹5,515 crore. Analysts noted that the profit was largely attributed to a revaluation of outstanding Adjusted Gross Revenue (AGR) liabilities rather than improved business performance. The company also announced plans to raise ₹45,000 crore over the next three years, combining funded and non-funded facilities. Kishor highlighted that the SBI consortium’s support would help address financial uncertainties tied to AGR disputes and operational challenges. Vi’s strategic focus includes expanding its 4G and 5G networks to compete with Reliance Jio and Bharti Airtel. Kishor stated that the ₹45,000 crore investment will accelerate infrastructure upgrades, ensuring the company retains customers and maintains market share. The loan is expected to fund a significant portion of this expansion, alongside promoter investments and tax refunds. However, the CEO declined to specify a timeline for completing the funding process, stating the company would comment only after the process concludes.#state_bank_of_india #bharti_airtel #vodafone_idea #reliance_jio #abhijit_kishor
