Vodafone Idea repays IDFC First Bank’s ₹1,500 cr dues

Vodafone Idea has paid an amount of ₹1,500 crore to IDFC First Bank along with ₹110 crore interest.

In a filing to NSE, Vodafone Idea notified that it had made timely payment of principal amount together with interest for certain debentures. The debentures were due on December 13 and the payment was made on time. The details of the payment were not disclosed by the company. As per news source, the payment was made to IDFC bank.

This comes even as there are fears of Vodafone Idea missing out on payments as it has not been able to close a funding deal so far.

Still the company continues to hold debt to private lenders and it is to be payable soon.

Moreover, analysts remain sceptical regarding whether the company will be able to pay its dues even with the government kicking the can down the road for a major chunk of its dues.

Analysts have been calling for immediate rounds for fundraising to tide over the payment schedule.

“(Vodafone Idea) needs immediate funding for ₹6,400 crore of NCD repayments due between Dec’21 and Mar’22,” Motilal Oswal said in a report a few weeks ago.

As per the last financial reports, as of September 30, the group’s total debt stands at ₹1,94,778 crore. The existing debt, payable by September 30, 2022, is of the order of ₹9,732 crore.

According to experts, Vodafone Idea owes ₹23,000 crore to the financial system which includes banks and a few other entities. Of this ₹6,000 crore were due by February 2022. After the payment of ₹1,500 crore to IDFC, Vodafone still has ₹4,500 crore due by early next year.