Business Desk: Vodafone Idea i.e. Vi is preparing to raise big funds to strengthen its network and telecom services. The company is busy forming a consortium of 8 to 10 banks to take a 10-year term loan of about Rs 35,000 crore.
The country's largest bank, State Bank of India i.e. SBI, can take the largest stake in this loan. According to the information, SBI has approved the proposal to take about 20% exposure. In such a situation, the bank's share may be around Rs 7,000 crore.
This funding is important for Vi because the company needs a total of about Rs 60,000 crore to upgrade its network and services. About Rs 35,000 crore can be obtained from the proposed bank loan, but even after this there will be a funding gap of about Rs 25,000 crore. The company can raise this amount through internal resources or further equity.
SBI will give the biggest share, other banks will jointly raise the amount.
The proposed consortium may include 8 to 10 banks. SBI's stake is likely to be around Rs 7,000 crore. The remaining amount will be distributed among other government and private banks.
According to the information, each lender's share is likely to be at least Rs 1,500 crore. It will be difficult to fund such a huge amount through a single bank, hence many banks will have to work together to prepare the loan structure.
SBI has put many important conditions along with the loan.
Along with providing funding to Vi, SBI has also placed some important conditions. The biggest condition is that if the company needs more investment than the amount received from the bank, then Vodafone Idea will have to arrange additional funding itself.
Apart from this, a condition has also been kept for Kumar Mangalam Birla. Birla, who became the chairman of the company again in May 2026, will have to remain the chairman during the entire loan tenure.
SBI will also keep an eye on the cash flow of the company. All funds related to the loan will be routed through bank accounts, so that the use of funds can be monitored.
Aditya Birla Group will also have to retain stake
The loan terms also include conditions related to Aditya Birla Group's stake. The group will have to retain its stake in the company after converting its warrants and rights into equity.
Apart from this, Comfort Guarantee will also be given by a group company. Bankers believe that such a guarantee will protect the interests of lenders in difficult situations.
Why did Kumar Mangalam Birla's return become a major condition of the loan?
Kumar Mangalam Birla resigned from the board of Vodafone Idea in 2021. At that time the company was going through the pressure of huge government liabilities and continuously decreasing revenue.
In May 2026, he again returned as the Chairman of the company. Now, in view of the long term loan, banks want that the company should continue to get the support of the Promoter Group.
According to a banker, lenders want assurance that Vi and its lenders will not be left alone in difficult times if the company's plans do not progress as expected.
How much stake does the government and Vodafone have in Vi?
At present, Aditya Birla Group and its associated companies have about 6.64% stake in Vodafone Idea. The Government of India holds about 49% stake. The government had acquired this stake after converting a part of the outstanding amount of the company into equity.
Britain's Vodafone is among the major shareholders with about 19% stake. Aditya Birla Group is the third largest shareholder group in terms of stake.
NaBFID can give loan of around Rs 4,000 crore
National Bank for Financing Infrastructure and Development i.e. NaBFID can also be a big lender in the proposed Consortium. It is likely to take exposure of around Rs 4,000 crore. If this happens, it can become the second largest lender of the Consortium.
Apart from this, Punjab National Bank, Canara Bank, Bank of Baroda and Union Bank of India are also in contact with Vodafone Idea. After joining the SBI Consortium, the possibility of these banks also becoming a part of this funding structure has increased.
Talks with ICICI and HDFC Bank also
Among the big private sector banks, ICICI Bank and HDFC Bank are also in talks with Vi. The company needs a big term loan of about Rs 35,000 crore, so 8 to 10 banks will have to jointly fund it.
According to the information, the entire structure of the loan can be ready by mid-October. After getting funding, Vi will be able to increase investment in its network, technology and services. However, the real challenge before the company is still to meet the total funding requirement of about Rs 60,000 crore.
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