Vodafone Idea scaled 4% on receiving proposal for Rs 15,000 crore line of credit

Shares of Vodafone Idea NSE 3.98 % climbed 4 percent in Monday’s trade after the telecom operator has got an initial proposal for up to $2 billion or Rs 15,000 crore line of credit from a consortium led by US investment firm Oak Hill Advisors

The proposed funding model will likely be a blend of bonds and warrants that will give the consortium members an option to convert part of the loan to shares of the company at a later stage, bankers and industry executives aware of the matter told. Following the development, the stock rose 3.69 percent to hit a high of Rs 10.41 on BSE.

Sixth Street, Twin Point Capital, and Varde Partners are among other global investors in the consortium that has given a non-binding term sheet to Vi, they said.

The loss-making telco owned by UK’s Vodafone Group and India’s AV Birla Group needs funds urgently to bolster its 4G network, arrest a steady loss of customers to rivals and pay arrears to the government

Negotiations are on to finalize the terms, an executive with knowledge of the matter told ET. The consortium is likely to submit a binding term sheet only by the end of December after both sides agree on the agreements, the people said.

Vi has separately also reached out to Canada’s Brookfield to raise cash, they said.

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