Vodafone Idea’s lenders are urging the telecom operator to scale back its financial projections and are demanding a corporate guarantee from another Aditya Birla Group firm for a massive ₹35,000 crore loan, according to livemint.com. The request comes as Vodafone Idea stabilized its subscriber base at 192.8 million in the quarter ended March, maintaining numbers from the previous quarter.
The lenders’ move reflects caution amid Vodafone Idea’s ongoing financial challenges. Two people aware of the development told livemint.com that the lenders want the company to temper its business plan and seek additional security in the form of a corporate guarantee from a group entity. This step aims to mitigate risks associated with the large debt exposure and ensure repayment assurance.
Vodafone Idea’s ₹35,000 crore debt plan is significant in the Indian telecom sector, which has seen intense competition and consolidation. The company’s stabilized subscriber base suggests some operational resilience, but the lenders’ demands highlight persistent concerns about its financial health. The involvement of the Aditya Birla Group as guarantor underscores the importance of group support in managing the telecom operator’s liabilities.
Vodafone Idea’s lenders continue to negotiate terms to secure the loan, with the company’s financial strategy under close scrutiny. The stabilized subscriber base of 192.8 million as of March provides a concrete metric amid these developments, as reported by livemint.com.