Key Takeaways from the Deal

• Vodafone Idea has secured a USD 3.6 billion deal with Nokia, Ericsson, and Samsung to upgrade its network over the next three years.
• The investment is part of a broader USD 6.6 billion capex plan to expand 4G coverage, launch 5G, and increase capacity.
• Vodafone Idea has completed several projects classified as quick win capex, resulting in a 15% increase in network capacity and expanding coverage by 16 million people.

As per a stock exchange filing, VIL has renewed its long-term partnerships with Nokia and Ericsson while welcoming Samsung as a new partner. These contracts will provide the company with advanced network equipment to enhance customer experiences. The rollout will also introduce flexibility and modularity, which will enable custom services for 4G and 5G technologies. Additionally, the equipment is also expected to improve energy efficiency and reduce operating costs. Supplies for the long-term contracts will begin in the coming quarter, with the immediate priority to increase 4G population coverage to 1.2 billion.

The company also mentioned that following an equity raise of INR 240 billion and spectrum acquisition of INR 35 billion in June 2024, they have already undertaken several "quick win" capex projects, resulting in a 15% increase in network capacity and coverage expansion by 16 million people by the end of September 2024. Improvements in customer experience have already been observed in regions where these rollouts have been completed.

Akshaya Moondra, CEO, of Vodafone Idea Limited, commented, “We are committed to investing in emerging network technologies to provide a best-in-class experience to our customers. We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to working closely with all our partners as we move into the 5G era.”

About Vodafone Idea Limited 

Vodafone Idea is a prominent telecommunications service provider in India that offers a full suite of services across mobility and long-distance communication. The business portfolio of the company includes voice services, broadband services, content solutions, and enterprise solutions for business customers through its professional service offerings. Vodafone Idea also offers various value-added services (VAS) for entertainment, utility, and SMS services to all customers, whether individual or enterprise, across India.

Key Takeaways from Adani Total Gas Securing Largest Global Financing:

• Adani Total Gas shares jumped approximately 8% following a strong fund announcement globally.
• The company said that it has arranged for financing to help in supporting its City Gas Distribution business.
• The first amount of the fund is $375 million with $315 million having been committed in the deal while it has an option of raising more funds.
• Five international banks, including BNP Paribas and DBS Bank, appear in the first round of funding.
• Its funds will increase the reach of its distribution network across 34 authorised geographical areas in 13 states, therefore reaching more than 200 million people nationwide in the country of India.

The initial funding of $375 million, arranged with overseas lenders, comprises $315 million in commitments and the ability to raise more funds. Five international banks participated in the first batch of funding, namely BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

This funding will allow Adani Total Gas to increase its distribution network across 34 authorised geographical areas in 13 states, affecting over 200 million people or approximately 14% of the population of India. The project has been targeted at expanding the infrastructure for CNG and PNG towards promoting a gas-based economy.

Parag Parikh, CFO of ATGL, in his comments, said, “This financing framework will drive ATGL’s sustained growth and will be a stepping-stone for future financing based on its capital management plan which will create a long-term value for all our stakeholders”.

About Adani Total Gas Limited 

Adani Total Gas is building City Gas Distribution (CGD) Networks that supply Piped Natural Gas (PNG) to the Industrial, Commercial, Domestic (residential) and Compressed Natural Gas (CNG) to the transport sector. City gas distribution networks have been already set up by the company in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. Furthermore, the Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, and Udhamsingh Nagar gas distribution has been awarded to the consortium of Adani Total Gas Ltd and Indian Oil Corporation Ltd.ATGL has been permitted to work in 34 geographical areas and has been playing an important role in the efforts made by the country to enhance the share of natural gas in its energy mix. 

Out of 53 geographical areas, 34 are owned by ATGL and the remaining 19 by Indian Oil-Adani Gas Private Limited (IOAGPL), a 50:50 joint venture with ATGL and Indian Oil Corporation Limited. Additionally, ATGL has established two wholly owned subsidiaries namely, Adani TotalEnergies EMobility Ltd (ATEL) for its E- Mobility and Adani TotalEnergies Biomass Ltd (ATBL) for its biomass business. For its operations of gas meter manufacturing, the company has set up a 50:50 joint venture called Smart Meter Technologies Private Limited.

Key Takeaways from Adani Total Gas Securing Largest Global Financing:

• Adani Total Gas shares jumped approximately 8% following a strong fund announcement globally.
• The company said that it has arranged for financing to help in supporting its City Gas Distribution business.
• The first amount of the fund is $375 million with $315 million having been committed in the deal while it has an option of raising more funds.
• Five international banks, including BNP Paribas and DBS Bank, appear in the first round of funding.
• Its funds will increase the reach of its distribution network across 34 authorised geographical areas in 13 states, therefore reaching more than 200 million people nationwide in the country of India.

The initial funding of $375 million, arranged with overseas lenders, comprises $315 million in commitments and the ability to raise more funds. Five international banks participated in the first batch of funding, namely BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

This funding will allow Adani Total Gas to increase its distribution network across 34 authorised geographical areas in 13 states, affecting over 200 million people or approximately 14% of the population of India. The project has been targeted at expanding the infrastructure for CNG and PNG towards promoting a gas-based economy.

Parag Parikh, CFO of ATGL, in his comments, said, “This financing framework will drive ATGL’s sustained growth and will be a stepping-stone for future financing based on its capital management plan which will create a long-term value for all our stakeholders”.

About Adani Total Gas Limited 

Adani Total Gas is building City Gas Distribution (CGD) Networks that supply Piped Natural Gas (PNG) to the Industrial, Commercial, Domestic (residential) and Compressed Natural Gas (CNG) to the transport sector. City gas distribution networks have been already set up by the company in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. Furthermore, the Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, and Udhamsingh Nagar gas distribution has been awarded to the consortium of Adani Total Gas Ltd and Indian Oil Corporation Ltd.ATGL has been permitted to work in 34 geographical areas and has been playing an important role in the efforts made by the country to enhance the share of natural gas in its energy mix. 

Out of 53 geographical areas, 34 are owned by ATGL and the remaining 19 by Indian Oil-Adani Gas Private Limited (IOAGPL), a 50:50 joint venture with ATGL and Indian Oil Corporation Limited. Additionally, ATGL has established two wholly owned subsidiaries namely, Adani TotalEnergies EMobility Ltd (ATEL) for its E- Mobility and Adani TotalEnergies Biomass Ltd (ATBL) for its biomass business. For its operations of gas meter manufacturing, the company has set up a 50:50 joint venture called Smart Meter Technologies Private Limited.

Key Takeaways from the Deal

• Vodafone Idea has secured a USD 3.6 billion deal with Nokia, Ericsson, and Samsung to upgrade its network over the next three years.
• The investment is part of a broader USD 6.6 billion capex plan to expand 4G coverage, launch 5G, and increase capacity.
• Vodafone Idea has completed several projects classified as quick win capex, resulting in a 15% increase in network capacity and expanding coverage by 16 million people.

As per a stock exchange filing, VIL has renewed its long-term partnerships with Nokia and Ericsson while welcoming Samsung as a new partner. These contracts will provide the company with advanced network equipment to enhance customer experiences. The rollout will also introduce flexibility and modularity, which will enable custom services for 4G and 5G technologies. Additionally, the equipment is also expected to improve energy efficiency and reduce operating costs. Supplies for the long-term contracts will begin in the coming quarter, with the immediate priority to increase 4G population coverage to 1.2 billion.

The company also mentioned that following an equity raise of INR 240 billion and spectrum acquisition of INR 35 billion in June 2024, they have already undertaken several "quick win" capex projects, resulting in a 15% increase in network capacity and coverage expansion by 16 million people by the end of September 2024. Improvements in customer experience have already been observed in regions where these rollouts have been completed.

Akshaya Moondra, CEO, of Vodafone Idea Limited, commented, “We are committed to investing in emerging network technologies to provide a best-in-class experience to our customers. We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to working closely with all our partners as we move into the 5G era.”

About Vodafone Idea Limited 

Vodafone Idea is a prominent telecommunications service provider in India that offers a full suite of services across mobility and long-distance communication. The business portfolio of the company includes voice services, broadband services, content solutions, and enterprise solutions for business customers through its professional service offerings. Vodafone Idea also offers various value-added services (VAS) for entertainment, utility, and SMS services to all customers, whether individual or enterprise, across India.