There’s a catch, although. SBI is unlikely to disburse the funds until the time Vodafone Concept secures the remaining a part of the mortgage from private-sector banks, the sources mentioned.
“It has reached a very good place and, hopefully, [things] ought to transfer ahead now,” mentioned a senior banker who didn’t want to be named. It’s the promoter firms that may present the ensures, and never the bigger, listed group firms, which aren’t prepared to take action, the individual added. “Whereas these ensures might not absolutely cowl SBI’s publicity (which stays unknown), they supply an extra layer of consolation,” the banker mentioned. Vodafone Concept’s solely ask was that if every part goes nicely for 4 years, the ensures ought to be launched, which SBI is prepared to just accept, this individual mentioned.
Promoters at present maintain a mixed 25.64 per cent stake within the firm, with Vodafone Group Plc proudly owning 19 per cent and the Kumar Mangalam Birla-promoted Aditya Birla group holding 6.63 per cent as of March 2026. The Authorities of India owns round 49 per cent, however is classed as a public shareholder moderately than a promoter.
SBI didn’t reply to an electronic mail from Enterprise Commonplace on the event. Emails despatched to Vodafone Concept and Aditya Birla Group didn’t elicit a response until press time.
The banker quoted above, in the meantime, mentioned that “private-sector banks are destructive on the proposal, and are prone to negotiate individually with the corporate”. Vodafone Concept, mentioned this individual, “has to interact with all of the lenders and tie up your entire funding. Some public sector banks are prone to come on board, though it isn’t but clear how a lot every lender will contribute”. Until all of the lenders sanction their respective portion, the proposal can’t transfer ahead, the individual added.
The matter pertains to the ₹35,000 crore of contemporary funding that Vodafone Concept has sought to assist its ₹45,000 crore capital expenditure plan over the following three years. This plan contains rolling out 5G community throughout 17 precedence circles; tripling its earnings earlier than curiosity, taxes, depreciation, and amortisation (Ebitda); and shoring up buyer numbers to make sure income era. Of the entire funding, ₹25,000 crore has been sought from banks within the type of funded amenities. The remaining ₹10,000 crore is being requested for as a line of credit score, or non-funded amenities.
The corporate has already secured ₹6,400 crore as a part of long-term financial institution amenities within the quarter ended June 2026. “We stay meaningfully engaged with our lenders throughout these three cohorts and have made substantial progress,” Abhijit Kishore, Vodafone Concept’s chief government officer (CEO), had mentioned in a post-earnings analyst name on August 11. The three cohorts, he had defined, included six to seven public-sector banks, led by SBI; Indian personal sector banks; and exterior industrial borrowings (ECB) with a set of international banks.
“So far as SBI is anxious, the phrases are acceptable and it’ll course of and sanction its portion of the mortgage,” the banker quoted above mentioned. “The opposite lenders have additionally been knowledgeable and are conscious of the proposal, however every should undergo its personal inner course of and acquire board approval. The corporate,” added this individual, “should negotiate individually with every lender.”
The banker reiterated that whereas SBI was able to sanction the mortgage, the funds could be launched solely as soon as all of the lenders had accepted their respective parts. It is because in a capex plan of such nature, part-funding doesn’t work; all of the lenders have to return on board.
Kishore had mentioned that Vodafone India was “hopeful of closing the dialogue with the PSU banks led by SBI”, whereas persevering with work on different debt funding avenues.
Financial institution funding might be essential for the corporate, which intends to accentuate capex investments in FY27. After elevating the primary tranche of funds, Vodafone India had positioned orders value ₹9,000 crore with community suppliers Ericsson, Nokia, Samsung and others for gear for its 5G rollout.
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₹45,000 crore capex plan for 3 years -
₹6,400 crore raised in Q1FY27 in first tranche of funding -
Vi discussing mortgage “phrases with three cohorts — SBI-led public sector banks, private-sector banks, and international banks for exterior industrial borrowing” -
Funding wanted for capex for remaining aggressive within the Indian telecom sector -
Promoter assure nonetheless ‘make or break’ caveat
