Vodafone Idea’s bold equity move sparks investor confidence amid criticism

On June 14, 2024, prominent banker Uday Kotak critiqued the practice of issuing equity to creditors as a method of debt repayment. Without naming Vodafone Idea (Vi), Kotak in a post on X (formerly Twitter) wrote, “Financial markets create money out of thin air? A model for companies in financial difficulty: issue equity to creditors to repay their debt. If the stock is well traded, the creditor can sell in the market and get paid by investors.”