Industry Odisha Bureau, Sep 14: Vodafone Idea is seeking a ₹35,000-crore, 10-year term loan. SBI could take about ₹7,000 crore of the exposure. The company needs roughly ₹60,000 crore overall for network upgrades.
Vodafone Idea is assembling financing for its long-term capital expenditure plans. The telecom operator is seeking a ₹35,000-crore term loan. The proposed loan carries a 10-year tenure. Eight to ten lenders could eventually join the consortium.
SBI Could Take ₹7,000-Crore Exposure
State Bank of India has approved a proposal covering about 20% of the exposure. That would total roughly ₹7,000 crore. SBI’s internal assessment indicated approximately ₹35,000 crore of loans would be needed. Vodafone Idea must now bring other lenders into the consortium. The full ₹35,000-crore loan has not been sanctioned yet.
Vodafone Idea Needs ₹60,000 Crore for Upgrades
The company’s wider investment requirement stands near ₹60,000 crore. That covers planned service and network upgrades. The proposed bank financing would cover only part of this. The remainder could come from internal accruals or a later equity infusion.
NaBFID and Banks Discuss Consortium Participation
The National Bank for Financing Infrastructure and Development could become the second-largest lender. Its potential exposure stands near ₹4,000 crore. Other lenders could each contribute at least ₹1,500 crore. Banks reportedly in discussions include Punjab National Bank, Canara Bank, Bank of Baroda and Union Bank of India. ICICI Bank and HDFC Bank are also said to be in talks. None of these banks has been confirmed as having joined yet.
SBI Sets Conditions on Vodafone Idea Loan
SBI has attached several conditions to the proposed financing. Vodafone Idea would need to manage any investment shortfall beyond bank funding. SBI would maintain oversight over the company’s cash flows. Funds would be routed through lender-monitored accounts. The Aditya Birla Group must maintain its equity stake after certain conversions. A comfort guarantee from a group company also forms part of the terms.
Birla Chairmanship Becomes Financing Condition
Kumar Mangalam Birla returned as Vodafone Idea chairman in May 2026. Lenders reportedly require him to remain chairman through the loan tenure. That tenure spans 10 years. Birla had earlier exited the board in 2021, amid high government dues and falling revenues.
Vodafone Idea Ownership Structure
The Government of India owns approximately 49% of Vodafone Idea. Its stake rose after certain dues were converted into equity. UK-based Vodafone owns approximately 19%. The Aditya Birla Group and associated entities hold approximately 6.64%, making the group the company’s third-largest shareholder.
Loan Structure Expected by Mid-October
The contours of the financing could be finalised by mid-October. That timeline depends on additional lenders joining the consortium. Vodafone Idea’s broader ₹60,000-crore requirement will still need funding beyond this loan.
The proposed ₹35,000-crore facility marks a step towards financing Vodafone Idea’s next decade of capex. Its final shape will hinge on how many lenders actually sign on.
