Vodafone Idea (Vi) reportedly witnessed a hike in the share prices after Amazon, the e-commerce giant set to invest in the company by up to Rs 20,000 crore, with the struggling telecom operator with a huge network in the country.
Vi was in search of investors for raising fresh capital to pay down its debt along with investing in its network. The company was on the brink of bankruptcy and has been following help from the government.
Amazon has allowed the government to convert a major chunk of Vi’s adjusted gross revenue dues and its interests were supposed to be paid into equity. However, the telecom company has witnessed a persistent loss of subscribers which did affect the company even as the telecom sector managed to raise tariffs in the past three years.
In the first quarter-end (March 2022), the Vodafone Idea showed signs of revival as it reportedly added new 1 million 4G subscribers and it also reported the consolidated operating profits which upscaled by 22% due to recent tariff hikes.
Sources further stated that Amazon got interested to invest in Vi because it was the only major cloud services giant which had no telecom partner and was the only telecom operator without any investment from the US tech company.