Vodafone Idea Proposes Multi-Installment Plan to Settle ₹1,500 Crore Dues to Nokia

Kolkata: Vodafone Idea (Vi) has proposed to clear its remaining operational dues of around ₹1,500 crore to Nokia, a Finnish network solutions provider, in cash through multiple instalments by December 2025, according to sources. However, Nokia has not yet accepted this proposal.

Equity Shares

Recently, Vi issued 1,027 million equity shares to Nokia through a preferential issue to clear about half of its total ₹3,000 crore dues, amounting to ₹1,520 crore. As a result, Nokia Solutions and Networks India now holds a 1.47% stake in Vi, according to Vi’s shareholding structure filed on July 19.

Nokia’s second-quarter earnings report indicates that the impact of this share allotment will be reflected in its Q3 results. Neither Nokia nor Vi responded to ET’s queries by press time on Sunday.

Payment Delays

Despite delays in payments, Vi’s management remains confident that operational creditors like Nokia will continue to support them. This is because Vi’s upcoming 4G network expansion and new 5G rollouts are crucial for European network vendors Nokia and Ericsson, who have seen revenue drops as India’s top telcos, Reliance Jio and Bharti Airtel, reduce their network capex for FY25 after completing their 5G rollouts.

Analysts

Last month, Vi’s CFO Murthy GVAS told JP Morgan analysts that ongoing negotiations with vendors would not be affected despite payment delays. Vi is in talks with Nokia, Ericsson, and Samsung to purchase equipment for expanding its 4G network and launching 5G services.

Vodafone Idea, a joint venture between the UK’s Vodafone Plc and the Aditya Birla Group, recently raised about ₹23,000 crore in equity finance. The company is now seeking to raise an additional ₹23,000-25,000 crore through term loans from an SBI-led banking consortium and another ₹10,000 crore through non-fund-based facilities.