Amazon has agreed to allow the government to convert a significant portion of Vi’s adjusted gross revenue dues and interest payments into equity.
The share price of Vodafone Idea (Vi) has allegedly risen after Amazon, the e-commerce behemoth, announced plans to invest up to Rs 20,000 crore in the struggling telecom operator with a large network in the country.
Vi was looking for investors to help it raise new funds to pay off debt and expand its network. The corporation was on the verge of going bankrupt and had been relying on government assistance.
Amazon has agreed to allow the government to convert a significant portion of Vi’s adjusted gross revenue dues and interest payments into equity. However, despite the telecom sector’s ability to boost tariffs in the last three years, the telecom firm has experienced a consistent loss of users.
Vodafone Idea exhibited indications of resurrection in the first quarter of 2022, as it reportedly recruited 1 million new 4G users and reported consolidated operational earnings that increased by 22% due to recent rate hikes.
