Vodafone Idea is considering diluting its stake to one of its network vendors, according to the telecom operator’s stock exchange filing.
Board of Directors of Vodafone Idea will meet on Friday – October 21, 2022 — to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential / private placement basis to a vendor.
Nokia, Huawei, ZTE, Indus Towers, Cisco and HP are some of the main vendors of Vodafone Idea, Hindu BusinessLine reported.
Vodafone Idea said in September that it is in talks with Indus Towers for better payment terms, after reports emerged that the tower infrastructure provider warned that Vodafone Idea ran the risk of losing access to their telecom towers by November if the telecoms operator is unable to clear its dues.
Vodafone Idea is yet to clear dues to Nokia as well.
Vi’s promoter, Vodafone Plc owns a 21 percent stake in Indus Towers. Earlier this year, Bharti Airtel purchased a stake of 4.7 percent in Indus Towers from Vodafone Plc. If Vodafone Idea dilutes its equity stake to Indus Towers, Vodafone Plc will be able to increase its stake in Vi, and Airtel will acquire some stake in Voda Idea as well.
