Vodafone-Idea (VIL) has submitted a letter to the Department of Telecommunication to avail a 30 days grace period for the Rs 1,680 crore that the company was supposed to pay for the spectrum auction instalment, which was due on 17 August towards the 2022 auction.

The debt-ridden company has proposed to pay the amount with interest.

This comes even after one of the promoters has confirmed to provide direct and indirect financial support to the extent of Rs 2,000 crore in the event of meeting any fund requirements the company might have or for meeting impending payment obligations.

VIL has also acquired a 5G spectrum in mid-band (3300 megahertz and millimetre wave in the 26 GHz band in July 2022 spectrum auction.

Vodafone Idea Chief Executive Officer Akshaya Moondra said, “We are making good progress and expect to conclude these discussions in the coming quarter. That is as far as the equity funding is concerned. As far as debt funding is concerned, we have been engaged with a consortium of banks for a long time. Generally, their ask is that equity also needs to be tied up, we expect to conclude these funding arrangements in the coming quarter.”

The company’s net loss has grown to Rs 7,840 crore at the end of June quarter for the current fiscal year, whereas the revenue from operations has increased by just 2.3% YoY to Rs 10,655.5 crore from Rs 10,406.8 crore in Q1FY23.

Debt from financial institutions and banks stood at Rs 9,500 crore, while the capital raised through debt instruments stood at Rs 1,660 crore.

The total gross debt (excluding lease liabilities and including interest accrued but not due) as of 30 June 2023 stood at Rs 2,11,760 crore, comprising deferred spectrum payment obligations of Rs 1,33,740 crore and AGR liability of Rs 66,860 crore that is due to the government.

Vodafone-Idea has cash and cash equivalents of Rs 250 crore, whereas the net debt on the company stood at Rs 2,11,510 crore.

VIL’s subscribed total went from 24 crores in Q1FY23 to 22.14 crore on 30 June 2023.