Vodafone Idea Allowed More FDI Now
Vodafone Idea’s proposal to the government of allowing foreign direct investment to the count of Rs 15,000 crore has now been approved. Previously, the telecom operator was limited by the investment governing laws of the country, where they could not seek more than Rs 15,000 crore from a firm abroad. At the behest of the news, the stock of Vodafone Idea rose by 6% as per a report by ET Telecom. This, of course, comes as good news for the telecom company.
Things Still Uncertain But
Although this is a step towards the positive side, still things are unclear for Vodafone Idea since the actual funding is nowhere in the picture right now. The telco was last in talks with Apollo Global Management for raising Rs 22,400 crore, a lot of which would go towards AGR dues. The funding structure was mainly to be based on an equity-based exchange. However, it remains to be seen from when and where Vodafone Idea raises funds. The telco’s survival is an imperative event for the dynamic balance in the telecom industry, which might deteriorate to a two-player mode in the absence of Vodafone Idea.
