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Under the agreement, VIL is slated to receive ₹5,836 crore from Vodafone Group promoters in the form of cash infusion of ₹2,307 crore in the next 12 months and balance in the form of proceeds from sale of VIL’s 328 crores shares that have been earmarked by VGP for this settlement to be exercised as per VIL’s discretion in the next five years.

Under the agreement, VIL is slated to receive ₹5,836 crore from Vodafone Group promoters in the form of cash infusion of ₹2,307 crore in the next 12 months and balance in the form of proceeds from sale of VIL’s 328 crores shares that have been earmarked by VGP for this settlement to be exercised as per VIL’s discretion in the next five years.

VIL has raised equity aggregating ~₹22,000 crore since March 2024, including ₹18,000 crore through a follow-on public offering (FPO) and balance through promoter contributions.

Successful equity raise from market and promoters boosting investor confidence In April 2024, VIL successfully raised ₹18,000 crore from capital markets through FPO, which was subscribed ~7 x, showing healthy interest by institutional investors.

In May 2024, ABG infused ₹2,075 crore in equity funds, and VGP infused equity of ₹1,980 crore in January 2025.

In addition, the NCD issued by VITIL of ₹3,300 crore are outstanding as on December 31, 2025.

VIL has received cash inflow of around ₹26,000 crore from equity proceeds including ₹4,000 crore from vendors in the past 12 months from March 2024 to February 2025.

Successful raising of equity funds from market and promoters VIL successfully raised ₹18,000 crore from capital markets through follow-on public offer (FPO) in April 2024, which was subscribed by ~7x showing a healthy interest by Institutional investors.

In May 2024, ABG infused ₹2,075 crore in equity funds, apart from conversion of (Optionally Convertible Debenture) OCD into equity of ₹160 crore, preferential issue to Nokia and Ericsson of ₹2,458 crore in July 2024, and infusion of ₹1,910 crore by VGP in January 2025.

Liquidity: Stretched VIL has cash and bank balance of ₹12,090 crore as on December 31,2024, which is largely earmarked for capex.

Ratings also take cognisance of large fund raise through follow-on public offer (FPO) of ₹18,000 crore from institutional and retail investors apart from conversion of optionally convertible debentures (OCD) in to equity of ₹1,600 crore, preferential issue to Nokia and Ericsson of ₹2,458 crore, preferential issuance of ₹2,075 to ABG Group in July 2024 and proposed infusion of ₹1,980 crore by VGP in January 2025, and improvement in average revenue per user (ARPU) from ₹146 in Q4FY24 to ₹156 in Q2FY25 due to tariff hike undertaken by VIL across mobile plans in July 2024.

Key strengths Successful raising of equity funds from market and promoter VIL successfully raised ₹18,000 crore from capital markets through follow-on public offer (FPO) in April 2024, which was subscribed by ~7x showing a healthy interest by Institutional investors.

In May 2024, ABG infused ₹2,075 crore in equity funds, apart from conversion of OCD in to equity of ₹1,600 crore, preferential issue to Nokia and Ericsson of ₹2,458 crore, and proposed infusion of ₹1,980 crore by VGP in January 2025, taking the total quantum to ₹26,113 crore The fund raising will aid in implementing its business plan in strengthening 4G coverage, capacity additions and rollout of 5G .

Liquidity: Stretched VIL has a free cash and bank balance of ~₹779 crore as of September 30, 2024 (excluding the FPO proceeds).

Key strengths Successful raising of equity funds from market and promoter VIL successfully raised ₹18,000 crore from capital markets through Follow-on Public Offer (FPO) in April 2024, which was subscribed by ~7x showing a healthy interest by Institutional investors.

In May 2024, the promoter, ABG infused equity funds of ₹2075 crore, taking the total quantum to ₹20,075 crore in two months.

Liquidity: Stretched VIL has a free cash and bank balance of around ₹168 crore as of March 31, 2024.

Additionally, CARE Ratings has withdrawn the rating assigned to the NCD issue (INE669E08318) of VIL aggregating Rs.1,500 crore, with immediate effect, as the company has repaid the NCD issue in full and there is no amount outstandingunder the issue as on date.

Press Release Liquidity: Poor VIL had free cash & bank balances of ₹250 crore as on June 30, 2023, and the obligations for the balance period of FY24 stands at ₹8,605 crore.

Liquidity: Poor VIL had free cash & bank balances of ₹250 crore as on June 30, 2023, and the obligations for the balance period of FY24 stands at ₹8,605 crore.

Furthermore, the ratings take cognisance of fund infusion by promoters of around Rs.5,000 crore, conversion of interest dues in to equity stake of Department of Investment and Public Asset Management, Government of Indiatowards 4-year deferment of spectrum auction instalment & AGR dues and issuance of Rs.1,600 crore optionally convertible debentures (OCDs) to ATC Telecom Infrastructure Private Limited (ATC TIPL, rated CARE AA-;

Liquidity: Poor VIL had free cash and bank balances of around Rs.154 crore as on December 31, 2022, and the total gross debt (excluding lease liabilities and including interest accrued but not due) stood at Rs.2,22,900 crore as on December 31, 2022.

Note: CARE Ratings Limited (CARE Ratings) has withdrawn the rating assigned to the NCD issues of VIL, to the tune of Rs.3,000 crore, with immediate effect, as the company has repaid the NCD issue in full and there is no amount outstanding under the issue as on date.

Note: CARE Ratings Limited (CARE Ratings) has withdrawn the rating assigned to the NCD issues of VIL, to the tune of Rs.3,000 crore, with immediate effect, as the company has repaid the NCD issue in full and there is no amount outstanding under the issue as on date.

Furthermore, the ratings take cognisance of fund infusion by promoters of around Rs.5,000 crore and the approval from the Board of Directors (BoD) of VIL for the issuance of Rs.1,600 crore optionally convertible debentures (OCDs) to ATC Telecom Infrastructure Private Limited (ATC TIPL, rated CARE AA-;

Liquidity: Poor VIL had free cash and bank balances of around Rs.828 crore as on September 30, 2022, and the total gross debt (excluding lease liabilities and including interest accrued but not due) stood at Rs.2,20,320 crore as on September 30, 2022.

CARE Ratings’ takes note of the on -time repayment of NCD obligati ons, deferment of Adjusted Gross Revenue (AGR) and related dues, and has removed the ‘ Credit watch with Negative Implications’ while assigning ‘Stable’ outlook to the ratings.

Further, CARE Ratings Ltd. has withdrawn the rating assigned to the NCD issue of VIL, to the tune of Rs.3,000 crore, with immediate effect, as the company has repaid the NCD issue in full and there is no amount outstanding under the issue as on date.

Further, CARE Ratings Ltd. has withdrawn the rating assigned to the NCD issue of VIL, to the tune of Rs.3,000 crore, with immediate effect, as the company has repaid the NCD issue in full and there is no amount outstanding under the issue as on date.

Press Release Additionally, VIL has also repaid the NCD issue (INE669E08284) with a coupon rate of 8.04% amounting to Rs.2,000 crore, and the NCD issue (INE669E08292) with a coupon rate of 8.03% amounting to Rs.500 crore, as on January 27, 2022 and January 31, 2022, respectively.

Liquidity: Poor VIL had free cash and bank balances of Rs.1,493.30 crore (including cash and cash equivalents of Rs.352.00 crore and liquid mutual fund investments of Rs.1,141.30 crore) as on December 31, 2021, and the gross debt (excluding lease liabilities) stood at Rs.1,98,980 crore as on December 31, 2021.

The company repaid debt amounting Rs. 2,875 crore as on July 10, 2020.

VIL has high quantum of debt levels, majority of which is in the form of deferred payment loan from DoT availed for acquiring spectrum.

Restricted financial flexibility from promoter groups towards extending financial support to VIL: In May 2019, VIL has successfully raised Rs. 24,999.79 crore from the rights issue from its existing shareholders including promoters (i.e.

At the time of the recent rights issue, Vodafone Group Plc. funded its contribution of Rs. 11,097 crore through a foreign currency loan indirectly secured on these assets.

CARE expect that the reported cash and cash equivalent of Rs. 12,530 crore as on December 31, 2019 is expected reduce further considering the AGR payouts.

VIL has high quantum of debt levels, majority of which is in the form of deferred payment loan from DoT availed for acquiring spectrum.

Restricted financial flexibility from promoter groups towards extending financial support to VIL: In May 2019, VIL has successfully raised Rs. 24,999.79 crore from the rights issue from its existing shareholders including promoters (i.e.

At the time of the recent rights issue, Vodafone Group Plc. funded its contribution of Rs. 11,097 crore through a foreign currency loan indirectly secured on these assets.

Against both the debt repayments and capex requirement, VIL has a free available unencumbered cash and cash equivalents of Rs. 12,530 crore as on December 31, 2019.

VIL has high quantum of debt levels, majority of which is in the form of deferred payment loan from DoT (Department of Telecom) availed for acquiring spectrum.

Restricted financial flexibility from promoter groups towards extending financial support to VIL: In May 2019, VIL has successfully raised Rs. 24,999.79 crore from the rights issue from its existing shareholders including promoters (i.e.

As on September 30, 2019, from net proceeds received of about Rs. 24,915.11 crore (gross proceeds of Rs. 24,999.79 crore – Rs. 84.68 crore of estimated issue expenses), Rs. 9,461.42 crore has been utilized to repay the spectrum liabilities and Rs. 6,220.00 crore has been used towards general corporate purpose.

At the time of the recent rights issue, Vodafone Group Plc. funded its contribution of Rs. 11,097 crore through a foreign currency loan indirectly secured on these assets.

Against both the debt repayments and capex requirement, VIL has a free available unencumbered cash and cash equivalents of Rs. 15,564 crore as on September 30, 2019 (Rs.21,180 crore as on June 30, 2019).

However, the ratings continue to derive strength from the strong sponsors (i.e., Aditya Birla Group and Vodafone Group PLC) support as exhibited via recent infusion of funds by way of rights issue amounting to Rs. 24,999.79 crore (Rs. 17,920.72 crore from promoters and balance from public), expected business synergies with merger of Vodafone India and Idea Cellular Limited and pan-India telecom presence with high brand recognition (i.e.

VIL has high quantum of debt levels, majority of which is in the form of deferred payment loan from DOT (Department of Telecom) availed for acquiring spectrum.

As on June 30, 2019, from net proceeds received of about Rs. 24,894.79 crore ( Gross Proceeds of Rs. 24,999.79 crore – Rs. 105 crore of Estimated Issue Expenses), Rs. 6,741.48 crore has been utilized to repay the spectrum liabilities and Rs. 3,350.50 crore has been used towards general corporate purpose.

Liquidity: Adequate The liquidity profile of the company remained adequate with an unencumbered cash and cash equivalent of Rs.21,180 crore as on June 30, 2019 against the debt repayment obligation(including installment of deferred payment obligation) of ~Rs. 9,800 crore maturing in the next 9 months ending March 31, 2020.

However, the ratings continue to derive strength from the strong sponsors (i.e., Aditya Birla Group and Vodafone Group PLC) support as exhibited via recent infusion of funds by way of rights issue amounting to Rs. 24,999.79 crore (Rs. 17,920.72 crore from promoters and balance from public), expected business synergies with merger of Vodafone India and Idea Cellular Limited and pan-India telecom presence with high brand recognition (i.e.

VIL has high quantum of debt levels majority of which is in the form of deferred payment loan from DOT (Department of Telecom) availed for acquiring spectrum.

Liquidity: Adequate The liquidity profile of the company remained adequate with an unencumbered cash and cash equivalent of Rs.21,180 crore as on June 30, 2019 against the debt repayment obligation of Rs. 9,802.60 crore maturing in the next 9 months ending March 31, 2020.

Liquidity: Adequate The liquidity profile of the company remained adequate with an unencumbered cash and cash equivalent of Rs.21,180 crore as on June 30, 2019 against the debt repayment obligation of Rs. 9,802.60 crore maturing in the next 9 months ending March 31, 2020.

However, the ratings continue to derive strength from the strong sponsor (i.e., Aditya Birla Group and Vodafone Group PLC) support exhibited through infusion of funds in the company by way of rights issue amounting to Rs. 24,999.79 crore (Rs. 17920.72 crore from promoters and balance from public), expected business synergies with merger of Vodafone India and Idea Cellular Limited, and pan-India telecom presence with high brand recognition (i.e.

VIL has high quantum of debt levels majority of which is in the form of deferred payment loan from DOT (Department of Telecom) availed for acquiring spectrum.

Liquidity: The company had unencumbered cash and & cash equivalent of Rs.7,373 crore as at March 31, 2019 (PY: Rs.4,547 crore) as against the annual debt repayment obligation of Rs. 16,927 crore for FY20 reflecting paucity of fund to meet the aforesaid mentioned debt obligation.

Liquidity: The company had unencumbered cash and & cash equivalent of Rs.7,373 crore as at March 31, 2019 (PY: Rs.4,547 crore) as against the annual debt repayment obligation of Rs. 16,927 crore for FY20 reflecting paucity of fund to meet the aforesaid mentioned debt obligation.

The rating positively factors infusion of funds via rights issue to the tune of ~ Rs 25000 crore (wherein Vodafone Group and the Aditya Birla Group would contribute Rs 11,000 crore and Rs 7,250 crores, respectively and even a higher amount if the issue is undersubscribed, subject to applicable law) by Q1FY20.

Liquidity analysis: The liquidity position of VIL is comfortable with high levels of unencumbered cash and & cash equivalent of Rs.8,904 crore as December 31, 2018 and lower working capital utilizations which provides cushion to meet any contingencies.

Increased debt level; but repayments spread over a long period: VIL has high quantum of debt levels majority of which is in the form of deferred payment loan from DOT (Department of Telecom) availed for acquiring spectrum.

The rating positively factors infusion of funds via rights issue to the tune of ~ Rs 25000 crore (wherein Vodafone Group and the Aditya Birla Group would contribute Rs 11,000 crore and Rs 7,250 crores, respectively and even a higher amount if the issue is undersubscribed, subject to applicable law) by Q1FY20.

Liquidity analysis: The liquidity position of VIL is comfortable with high levels of unencumbered cash and & cash equivalent of Rs.8,904 crore as December 31, 2018 and lower working capital utilizations which provides cushion to meet any contingencies.

Increased debt level; but repayments spread over a long period: VIL has high quantum of debt levels majority of which is in the form of deferred payment loan from DOT (Department of Telecom) availed for acquiring spectrum.