American firm TGH may invest $4-6 billion in Vodafone-Idea (Vi). This investment is dependent on the government relief package on AGR and spectrum dues. If the deal is successful, TGH may take control of the company, which will reduce the stake of the existing promoters.
New Delhi: Tillman Global Holdings (TGH), a US-based private equity firm, may invest $4 to 6 billion (₹35,000-52,000 crore) in telecom company Vodafone-Idea (Vi). The company is currently negotiating this deal. According to media reports, TGH will complete this deal only if the government provides a relief package for the company’s outstanding AGR and spectrum liabilities. If this deal is finalized, TGH will get the status of promoter in the company and the control of Aditya Birla Group and UK’s Vodafone Group will be reduced. The government, which currently holds about 49% stake, will remain a passive investor.
TGH will tell the investment terms to the government
TGH has submitted a detailed plan to the government. It said the firm is not seeking any dues waiver, but is seeking restructuring of liabilities. This deal will go ahead only if the government approves the relief package and investment simultaneously.
TGH invests in digital and energy infrastructure. Its chairman, Sanjeev Ahuja, is known for turning French telecom company Orange from loss-making to profitable between 2003 and 2007. The company has global investments in fiber and tower infrastructure.
Vodafone-Idea is in bad shape
Vi has raised ₹24,000 crore in 2024-25, but the company is still in debt and losses. This year, it has to pay outstanding liabilities (AGR and spectrum fees) of around ₹84,000 crore. Although the company has recently received some relief from the Supreme Court, it is not clear whether this relief applies to the entire AGR liability or just the additional demand of ₹9,000 crore.
The Department of Telecommunications (DoT) has already prepared some options for outstanding relief. If the government agrees, TGH can take over the company’s operations with investment. After the deal, the government’s stake will be reduced, while Birla and Vodafone may get an exit.