Debt finance is needed by VI in order to invest in the upgrade of new networks and limit hefty losses for customers of rivals Reliance Jio and Bharti Airtel.
In the past two years, Vi has floundered to render cash, and raise equity or foreign debt. It has pretty much-survived thanks to the government bailout for the industry announced in September 2021, allowing service providers to delay payment of thousands of crores of statutory fees, in addition to measures other.
“A meeting of the board of directors of the company is scheduled to be held on Friday, October 21, inter-alia, to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential/private placement basis to a vendor, subject to regulatory and other statutory approvals as may be required, including approval of the shareholders of the company,” Vi conveyed in an interaction.
Vi was also unable to schedule a 5G launch due to problems with completing network equipment and tower rental agreements as vendors insisted on paying 4G-related fees upfront for new contracts. In contrast, its closest competitor, Bharti Airtel and Reliance Jio has already launched 5G services in eight cities and has started beta testing 5G in four.
