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  • Indian government to take nearly half of Vodafone Idea as debt converts to equity

    Indian government to take nearly half of Vodafone Idea as debt converts to equity

    MUMBAI: India’s beleaguered mobile operator Vodafone Idea is about to get a new sugar daddy—the government itself. The ministry of communications has decided to convert the firm’s towering spectrum auction dues of Rs 36,950 crore into equity shares, catapulting the state’s ownership from 22.6 per cent to a whopping 48.99 per cent, according to a company regulatory filing with the BSE.

    The move, communicated via an order dated 29 March and received by the company on Sunday, follows the Modi government’s 2021 telecom sector bailout package. Vodafone Idea, which has been gasping for financial breath against rivals Reliance Jio and Bharti Airtel, will issue 3,695 crore equity shares at Rs 10 each within 30 days after securing regulatory approvals.

    Despite the government now holding the largest slice of the pie, the existing promoters will remain at the controls—suggesting New Delhi prefers to play sleeping partner rather than backseat driver in this marriage of convenience.

    The pricing methodology wasn’t plucked from thin air but follows regulatory guidelines—taking the higher of the volume-weighted price over either 90 or 10 trading days preceding 26 February 2025.

    This fiscal lifeline throws Vodafone Idea a much-needed oxygen tank as it struggles to keep up in India’s brutally competitive telecom market, where rock-bottom tariffs have made profitability as rare as an uncapped data plan.

  • ZeeL debt credit rating revised

    ZeeL debt credit rating revised

    NEW DELHI: Even as Zee Entertainment Enterprises Ltd (ZeeL) CEO Punit Goenka's 4.0 vision measures are beginning to bear fruit and are resulting in a better performance for the company, credit rating agency Brickwork Ratings India has downgraded its rating and that of its debt, namely the six per cent cumulative redeemable non-convertible preference shares. These debt instruments are worth Rs 806.78 crore.

    ZeeL informed the Bombay stock exchange about Brickwork's downgrade yesterday.

    The previous rating for the six per cent cumulative redeemable non-convertible preference shares instrument was BWR AA- (credit watch with negative implications) while the new rating is BWR A (credit watch with negative implications).

    The previous issuer rating was BWR AA- (credit watch with negative implications) while the new rating is BWR A (credit watch with negative implications).

    Brickwork said it has done this factoring in heightened uncertainties on contingent liabilities/claims against ZeeL causing increase in credit risk and rating concern.

    ZeeL is one of India's largest and oldest media conglomerates with a presence in linear, OTT and digital mediums. The media house is present in multiple genres such as news, films, production, GEC and others.

  • Bharti Airtel gets board nod to raise Rs 16,500 cr

    Bharti Airtel gets board nod to raise Rs 16,500 cr

    MUMBAI: Bharti Airtel’s board of directors has approved a plan to raise about Rs 16,500 crore through debt, including a fresh issue of $1 billion in overseas bonds, to help refinance loans and pay for spectrum. 

    The board approved the issue of foreign currency bonds of up to $1 billion (Rs 6,482 crore) and sought fresh shareholder approval for issuance of non-convertible debentures of up to Rs 10,000 crore on a private-placement basis, the company said in a release to the BSE. 

    At the meeting, the board also approved the transfer of 19 per cent equity stake in its direct-to-home (DTH) subsidiary Bharti Telemedia, which provides DTH services under the Airtel Digital TV brand, to Nettle Infrastructure Investments, a subsidiary company.

    A part of the stake will be utilised for the completion of stake sale in Bharti Telemedia to Warburg Pincus Group. In December 2017, Bharti Airtel had agreed to sell 20 per cent equity stake in Bharti Telemedia to Warburg Pincus for approximately $350 million.

    In January, the company had decided to transfer 25 per cent equity shares in Bharti Telemedia to its wholly owned subsidiary Nettle Infrastructure Investments. The company had also said that the stake transfer to Nettle does not include equity to be sold to private equity firm Warburg Pincus.

    “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board in its meeting held on March 12, 2018, has approved the transfer of 19 per cent equity shares of Bharti Telemedia Limited (‘Telemedia’), a subsidiary Company to Nettle Infrastructure Investments Limited, a wholly owned subsidiary company,” the release to the BSE stated.

    Also Read:

    Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

    TDSAT tells Airtel DTH, Star to negotiate

    Airtel Digital TV disconnects Star India channels

  • Reliance ADA group to hive off DTH operations

    Reliance ADA group to hive off DTH operations

    MUMBAI: The Anil Ambani-owned DTH service Reliance Digital TV which claims to have a five million net subscriber base and an estimated two million active connections is likely to be hived off in to a separate company. For the past three or four years, Reliance Communications, the parent company has been seeking a buyer for the venture. It had spoken to Sun TV in the past but the valuations and expectations did not match what the former was willing to pay for Reliance Digital TV. Unconfirmed reports say that the company had inconclusive conversations with other potential partners too. Hence, it has decided to go for a spin off of its DTH service business which has been relatively stagnant.

    Reliance Communications, the parent company of Reliance Digital, is being driven to do this to pare its debt-EBIDTA ratio. Speaking to investors yesterday RCOM CEO (consumer business) Gurdeep Singh said that the idea was to bring that number from 4.64 currently to about three in 18-24 months. Other assets that could be seeking buyers include equity stakes in its international operations at Reliance Globalcom, and in its tower unit Reliance Infratel.

    “We are looking to bring down our debt-to-EBIDTA ratio to around 3 within 18-24 months and are looking at monetizing our non-core assets to deleverage the balance sheet,” Reliance Communications (RCom) CEO (Consumer Business) Gurdeep Singh informed PTI. He added: “For this, we are looking at hiving off the DTH business, stake sale in our international operations at Reliance Globalcom, monetization of our real estate assets, as well as a possible divestment in Reliance Infratel, which handles our towers portfolio.”

    The group earlier this week announced the merger of its wireless business with another telco Aircel. It is also looking to raise $1 billion (approximately Rs 6,686.5 crore) in equity to expand the venture and make possible payments to the government for mobile spectrum use.

  • Reliance ADA group to hive off DTH operations

    Reliance ADA group to hive off DTH operations

    MUMBAI: The Anil Ambani-owned DTH service Reliance Digital TV which claims to have a five million net subscriber base and an estimated two million active connections is likely to be hived off in to a separate company. For the past three or four years, Reliance Communications, the parent company has been seeking a buyer for the venture. It had spoken to Sun TV in the past but the valuations and expectations did not match what the former was willing to pay for Reliance Digital TV. Unconfirmed reports say that the company had inconclusive conversations with other potential partners too. Hence, it has decided to go for a spin off of its DTH service business which has been relatively stagnant.

    Reliance Communications, the parent company of Reliance Digital, is being driven to do this to pare its debt-EBIDTA ratio. Speaking to investors yesterday RCOM CEO (consumer business) Gurdeep Singh said that the idea was to bring that number from 4.64 currently to about three in 18-24 months. Other assets that could be seeking buyers include equity stakes in its international operations at Reliance Globalcom, and in its tower unit Reliance Infratel.

    “We are looking to bring down our debt-to-EBIDTA ratio to around 3 within 18-24 months and are looking at monetizing our non-core assets to deleverage the balance sheet,” Reliance Communications (RCom) CEO (Consumer Business) Gurdeep Singh informed PTI. He added: “For this, we are looking at hiving off the DTH business, stake sale in our international operations at Reliance Globalcom, monetization of our real estate assets, as well as a possible divestment in Reliance Infratel, which handles our towers portfolio.”

    The group earlier this week announced the merger of its wireless business with another telco Aircel. It is also looking to raise $1 billion (approximately Rs 6,686.5 crore) in equity to expand the venture and make possible payments to the government for mobile spectrum use.