Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Just ahead of its mega <keyword id="20008249" type="General" weightage="20" keywordseo="FPO" source="keywords">FPO</keyword> opening to <keyword id="21332860" type="General" weightage="20" keywordseo="public-investors" source="keywords">public investors</keyword>, <keyword id="19899016" type="General" weightage="20" keywordseo="Vodafone-Idea" source="keywords">Vodafone Idea</keyword> (<keyword id="20062540" type="General" weightage="20" keywordseo="vil" source="keywords">VIL</keyword>) has announced closure of its anchor book allocation, raising about Rs 5,400 crore from marquee global as well as domestic investors, according to a statutory filing by the <keyword id="20132985" type="General" weightage="20" keywordseo="telco" source="keywords">telco</keyword>. This could be the third-largest anchor book after One 97 Communications and Life Insurance Corporation (LIC). One 97 Communications and LIC had raised Rs 8,235 crore and Rs 5,627 crore in the anchor round, respectively. In a notification to the exchanges on Wednesday, VIL said it has allotted 490.9 crore shares to 74 funds at Rs 11 apiece, which is also the upper end of the price band. This translated into a transaction size to Rs 5,400 crore. Of the total allocation to <keyword id="21330641" type="General" weightage="20" keywordseo="anchor-investors" source="keywords">anchor investors</keyword>, 79.52 crore stocks, or 16.2 per cent of the total, were allocated to five domestic mutual fund through a total of 11 schemes. Those who were allotted shares include GQG Partners Emerging Markets Equity Fund, Fidelity, UBS Fund Management, Abu Dhabi Investment Authority, Australian Super, Troo Capital, Morgan Stanley, Citigroup Global Markets Mauritius, and Jupiter Fund Management. Additionally, domestic investors, including Motilal Oswal Mutual Fund, HDFC Mutual Fund, SBI General Insurance and Quant Mutual Fund, were allocated shares in the anchor round. The Rs 18,000-crore FPO of Vodafone Idea will open for public subscription on April 18 and conclude on April 22, marking the biggest FPO in the country. The price band has been set at Rs 10-11 per share. Prior to this, the largest FPO in the Indian market was a Rs 15,000 crore share-sale by YES Bank in 2020. The fundraise would give the ailing telco the firepower to improve its positioning in the Indian telecom market, where it currently trails larger rivals such as Reliance Jio and Bharti Airtel, by a wide margin. The funds will also help VIL shore up finances for the much-delayed <keyword id="20366727" type="General" weightage="20" keywordseo="5G-rollout" source="keywords">5G rollout</keyword> and strengthening 4G services, and payment of vendor dues. On April 6, the VIL Board approved raising Rs 2,075 crore from promoter Aditya Birla Group and increasing its authorised share capital to Rs 1 lakh crore. Earlier this year, Vodafone Idea had outlined plans to raise Rs 45,000 crore through a mix of equity and debt as it looked to match services offered by rivals Reliance Jio and Bharti Airtel and arrest an alarming and prolonged subscriber churn. VIL has also been fighting a desperate battle for survival, saddled with debt of Rs 2.1 lakh crore and quarterly losses. According to Trai data, Vodafone Idea continued to bleed on the subscriber front. VIL lost 15.2 lakh wireless subscribers, plunging its mobile subscriber base to 22.15 crore in January, in sharp contrast to subscriber gains by Jio and Airtel.

Ahead of FPO, Vodafone Idea garners Rs 5,400 cr from anchor investors

<ul><li>Airtel has six times more cash than <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> Idea.</li><li>Both Reliance Jio and Airtel have nearly 1.5 times more subscribers than Vodafone Idea</li><li>Vodafone Idea has more spectrum compared to Jio but still gets the least amount of traffic.</li><li>The only thing it has more than others is debt. At the end of March, 2021, Vodafone Idea’s debt stood at ₹1.75 lakh crore, while Airtel’s debt stood at ₹1.53 lakh crore.</li></ul>Vodafone Idea’s situation continues to worsen, in terms of market share, revenue as well as the value of the company. On the other hand, its rivals, Bharti Airtel and Reliance Jio (owned by the country’s richest man Mukesh Ambani) continue to get stronger, often at the cost of Vodafone Idea. People are questioning the possibility of its survival. Even if it does get bailed out one way or another, the company will have a lot of catching up to do with its larger peers like Sunil Mittal’s Airtel and Ambani’s Reliance Jio. The loss of competitive muscle will only get worse the longer it remains in the current limbo. No wonder <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-birla-offers-to-give-up-his-27-stake-in-vodafone-idea/articleshow/84969189.cms">its Indian promoter Kumar Mangalam Birla</a> wants to give up his stake in the company, and his British partner Vodafone is not willing to sink any more money into this joint venture in India. Birla has also resigned as the non-executive director and chairman of the board of Vodafone Idea, a request which has been accepted by the company. Not surprisingly, the stock took a tumble. <div type="image" title="Vodafone Idea share price" msid="85035864" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Airtel has six times more cash than Vodafone Idea" comment="subhead" text="Airtel has six times more cash than Vodafone Idea">Airtel has six times more cash than Vodafone Idea</cmsannotation> As of March 31, 2021, Vodafone Idea had ₹2,216 crore in the form of cash and bank balances. This is six times lower than Airtel’s reported cash and bank balance in the same period. <cmsannotation type="cmsannotation" annotationid="The only thing that Vodafone has more of, than Airtel and Jio, is debt" comment="subhead" text="The only thing that Vodafone has more of, than Airtel and Jio, is debt">The only thing that Vodafone has more of, than Airtel and Jio, is debt</cmsannotation> The cash crunch will only get worse when it has to pay up the dues <a href="https://www.businessinsider.in/business/telecom/news/its-the-day-airtel-and-vodafone-idea-have-been-waiting-for-heres-the-agr-case-timeline-of-26-years/articleshow/77845908.cms">ordered by the Supreme court</a>, amounting to ₹58,631 crore. Of this, ₹5,034 crore falls due in December 2021 – an amount that the telco doesn’t seem to be in a position to pay. In comparison, Airtel’s balance AGR liability stands at ₹25,976 crore, which means its current liability comes to ₹2,598 crore. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Company </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Total AGR demand (in crore) </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">AGR dues paid (in crore) </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Balance (in crore) </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Vodafone Idea </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹58,254 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹7,854 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹50,339 </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Airtel </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹43,980 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹18,004 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹25,976 </td></tr></tbody><tbody></tbody><tbody></tbody></table> At the end of March, 2021, Vodafone Idea’s debt stood at ₹1.75 lakh crore, while Airtel’s debt stood at ₹1.53 lakh crore. <cmsannotation type="cmsannotation" annotationid="Vodafone is losing both subscribers and revenue at a fast pace" comment="subhead" text="Vodafone is losing both subscribers and revenue at a fast pace">Vodafone is losing both subscribers and revenue at a fast pace</cmsannotation> <div type="image" title="Vodafone Idea, Airtel, Reliance Jio subscribers May 2021." msid="85035881" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea, Airtel and Reliance Jio subscribers.&amp;lt;/p&amp;gt;"></div> Since the beginning of 2020, Vodafone Idea has lost over 51 million subscribers. In the same period, Airtel and Reliance Jio have gained over 21 million and 62 million subscribers, respectively. To make matters worse, Vodafone is losing the relatively lucrative 4G subscribers, too – in May, for each 2G/3G subscriber it lost, three 4G subscribers ported out from the operator. <div type="image" title="Vodafone Idea, Airtel, Reliance Jio ARPU March, 2021." msid="85035904" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea, Airtel and Reliance Jio ARPU as of March, 2021.&amp;lt;/p&amp;gt;"></div> The average revenue that Vodafone Idea makes from each of its users is also under pressure. According to the company’s latest statements, the average revenue per user stood at ₹107 at the end of March, 2021, down from ₹121 three months prior. For comparison, Airtel’s ARPU in the same period was ₹145, while Jio stood at ₹138. The problem with lesser ARPU has become a vicious cycle in the case of Vodafone Idea. If it raises tariffs to improve its earnings, and others don’t, the company will lose more subscribers. If others follow VI in raising tariffs, they make more money, which can be later used to edge it out. The longer VI waits for others to make the first move, the more money it bleeds. <cmsannotation type="cmsannotation" annotationid="Vodafone has more spectrum compared to Jio but still gets the least amount of traffic" comment="subhead" text="Vodafone has more spectrum compared to Jio but still gets the least amount of traffic">Vodafone has more spectrum compared to Jio but still gets the least amount of traffic</cmsannotation> According to data from a UBS report dated July 29, here’s how much spectrum all the three telecom operators held at the end of March, 2021: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Company </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Spectrum holding </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Airtel </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">2,112 MHz </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Vodafone Idea </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">1,768 MHz </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Reliance Jio </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">1,752 MHz </td></tr></tbody><tbody></tbody></table> Source: UBS, as of March, 2021 Despite holding the second largest chunk of spectrum, Vodafone Idea’s inability to upgrade its users to 4G has hampered its potential – both in terms of the number of 4G subscribers as well as the amount of data it serves. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Company </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">4G subscribers (in million) </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Total data (in million GB) </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Reliance Jio </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">426.6 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">16,700 </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Airtel </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">179.3 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">9,207 </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Vodafone Idea </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">113.9 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">4,856 </td></tr></tbody></table> Source: UBS, as of March, 2021 <cmsannotation type="cmsannotation" annotationid="The odds are stacked against Vodafone Idea" comment="subhead" text="The odds are stacked against Vodafone Idea">The odds are stacked against Vodafone Idea</cmsannotation> In a report dated July 29, Goldman Sachs maintained its ‘Sell’ rating for Vodafone Idea, with the target price set at ₹3 per share, suggesting that there is a further likelihood of a 60% decline in the telco’s share price. “It is well-flagged that Vodafone Idea has large repayments due starting Dec ‘21, and its balance sheet is stressed,” the report adds. “If Vodafone Idea is unable to repair its balance sheet quickly, we see an accelerated erosion in the company’s market share,” the report explains. On the other hand, analysts are bullish on Airtel. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Brokerage </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Target price </td><td style="border-width: 0.5pt 0.5pt 1pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Upside </td></tr><tr><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">JP Morgan </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹790 </td><td style="border-width: 1pt 0.5pt 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">38% </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Credit Suisse </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹750 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">31% </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">CLSA </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹730 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(217, 217, 217); padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">27% </td></tr><tr><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">Goldman Sachs </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">₹675 </td><td style="border-width: 0.5pt; border-style: solid; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 0pt 5.75pt; overflow: hidden; overflow-wrap: break-word;">17% </td></tr></tbody></table> Note: Upside compared to Airtel’s share price of ₹574, on August 4, 2021 SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/as-vodafone-idea-shares-dive-10-and-more-heres-a-look-at-what-analysts-had-to-say-about-it-prospect-in-recent-weeks/articleshow/84999673.cms">As Vodafone Idea shares dive 10% and more, here's a look at what analysts had to say about it prospect in recent weeks</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-shares-fall-as-sc-rejects-agr-dues-re-computation-appeal/articleshow/84668288.cms">Vodafone Idea sinks nearly 10% and Airtel tumbles a bit after India’s Supreme Court denies a discount on past dues</a> <a href="https://www.businessinsider.in/business/telecom/news/its-the-day-airtel-and-vodafone-idea-have-been-waiting-for-heres-the-agr-case-timeline-of-26-years/articleshow/77845908.cms">Airtel and Vodafone Idea get 10 years to repay AGR dues – here’s a timeline of the case</a>

The enormous gap between Vodafone Idea on one hand, Airtel and Jio on the other

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s shares zoomed on Monday after the government agreed to convert interest dues worth ₹16,133 crore into equity.</li><li>The equity conversion will make the government the largest shareholder of Vodafone Idea, with a 33% stake.</li><li>The government will remain a passive investor, leaving the Aditya Birla Group and Vodafone Plc as the primary decision makers of the telco.</li></ul>Vodafone Idea’s shares zoomed by 25% on Monday hitting an upper circuit, after the government agreed to convert interest dues worth ₹16,133 crore into equity. The move breathed a fresh lease of life into the telco’s attempts to raise funds to make payments to vendors and sign contracts with telecom equipment makers and roll out its 5G network. The share price of the troubled telco is back to its December 2022 levels, erasing the losses it saw this year, so far. <div type="image" title="Vodafone Idea share price April 2022 to Feb 2023." msid="97642952" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price in FY23&amp;lt;/p&amp;gt;"></div> “The total amount to be converted into equity shares is ₹16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of ₹10 each at an issue price of ₹10 each,” Vodafone Idea said in an exchange filing on February 3. The equity conversion will pave the way for the government to become the largest shareholder of Vodafone Idea, long after the telecom reforms package was <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">announced in September 2021</a>. As a result of this, the Aditya Birla Group’s stake will stand at 31.8%, while Vodafone Plc’s stake will be at 18.3%. This is a reduction from the existing stake of 75% held by the two promoters. <div type="Article" hostid="261" msid="86221662" title="Government picking up a stake in Vodafone Idea ‘might be a remedy worse than the disease’, say experts" mstype="2" mssubtype="0"></div> However, Aditya Birla Group, and Vodafone Plc, will continue to drive the company. Vodafone Idea’s management has already underlined that the government will neither take a seat on the company’s board, nor will it take decisions regarding the company’s operations. <cmsannotation type="cmsannotation" annotationid="Capital infusion key to Vodafone Idea’s future" comment="subhead" text="Capital infusion key to Vodafone Idea’s future">Capital infusion key to Vodafone Idea’s future</cmsannotation> Capital infusion remains a key to Vodafone Idea’s future, according to analysts. The telco has been struggling to retain subscribers while its rivals <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> and Bharti Airtel have seen both their subscriber numbers as well as the average revenue per user (ARPU) climb up each quarter since FY22. In the company’s post-result investor call in Q2, Vodafone Idea’s chief executive officer Akshaya Moondra had said, ‘’We are trying to close the funding quickly so that some of the backlog of vendor payments that we have can be addressed.” Vodafone Idea needs funds not just to fund its capital expenditure requirements, but also to service its debt. According to a Motilal Oswal report, its current earnings before interest, taxes, depreciation and amortization (EBITDA) of ₹8,700 crore in FY23 is inadequate to service debt. Capex is another piece of puzzle that the telco needs to solve. Vodafone Idea is yet to roll out its 5G offerings even as Jio and Airtel 5G services have been available in several parts of the country since October 2022. “The much-awaited capital raise remains critical to provide immediate liquidity and invest in the rollout of 5G and extending 4G infrastructure. Vodafone Idea acquired 5G spectrum in the 3300Mhz and 26GHz bands in the recent auction (September 2022) but unlike Reliance Jio and Bharti Airtel, it has not deployed the spectrum and remains significantly behind in 4G network rollout too,” said the Motilal Oswal report. It remains to be seen if the equity conversion gives investors enough confidence about the future of Vodafone Idea, and whether it will be enough for them to infuse funds that the telco needs desperately. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/adani-stocks-59844-crore-market-capitalisation-wiped-out-today-in-morning-trading/articleshow/97638076.cms">Adani group stocks continue to plummet – lose ₹59,844 crore in market capitalisation on Monday</a> <a href="https://www.businessinsider.in/business/corporates/news/adanis-stock-rout-can-impact-its-ability-to-raise-capital-or-refinance-debt-says-moodys/articleshow/97582403.cms">Adani’s stock rout can impact its ability to raise capital or refinance debt, says Moody’s</a> <a href="https://www.businessinsider.in/budget/news/budget-for-the-amrit-kaal-powered-by-capex-rooted-in-fiscal-consolidation/articleshow/97551916.cms">Budget for the Amrit Kaal: Powered by capex, rooted in fiscal consolidation</a>

Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity

British telecom major <keyword id="15492" type="General" weightage="100" keywordseo="vodafone" source="Orion">Vodafone</keyword> has raised its stake in debt-ridden <keyword id="6584552" type="General" weightage="50" keywordseo="vodafone-idea-limited" source="Orion">Vodafone Idea Limited</keyword> to 47.61 per cent through its subsidiary Prime Metals, a regulatory filing said on Monday. The company earlier held 44.39 per cent stake in <keyword id="1553175" type="General" weightage="80" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> Limited (VIL). "Prime Metals held 2,18,55,26,081 equity shares, representing 7.61 per cent of the equity share capital, of Vodafone Idea Limited (the "company"). <keyword id="42733" type="General" weightage="50" keywordseo="pml" source="Orion">PML</keyword> has acquired 570,958,646 equity shares of the company through allotment of equity shares pursuant to a preferential issue of the company," the filing said. On Thursday, Vodafone Idea had said that its board has approved the allotment of 338.3 crore equity shares at Rs 13.30 per scrip to three promoter group entities - <keyword id="777130" type="General" weightage="50" keywordseo="euro-pacific-securities" source="Orion">Euro Pacific Securities</keyword>, Prime Metals and <keyword id="13300460" type="General" weightage="50" keywordseo="oriana-investments" source="Orion">Oriana Investments</keyword> - for about Rs 4,500 crore. This includes allotment of 1,96,66,35,338 equity shares to Euro Pacific Securities (promoter), 57,09,58,646 equity shares to Prime Metals (promoter), and 84,58,64,661 equity shares to Oriana Investments (promoter group). The telecom operator in March had announced a Rs 14,500-crore fundraising plan, where promoters would inject Rs 4,500 crore. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/tatas-super-app-neu-is-all-set-to-launch-this-week/articleshow/90638405.cms">Tata’s super app ‘Neu’ is all set to launch this week</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/oneplus-nord-buds-expected-to-launch-soon-fcc-listing-reveals-design-and-battery-capacity/articleshow/90638554.cms">OnePlus Nord Buds expected to launch soon — FCC listing reveals design and battery capacity</a>

Vodafone raises stake to 47.61% in Vodafone Idea through subsidiary Prime Metals

<ul><li>Vodafone Idea has reportedly reached out to the Department of Telecom to release bank guarantees worth ₹15,000 crore.</li><li>The bank guarantees were given to the government with respect to the adjusted gross revenue (AGR) and spectrum dues worth ₹50,339 crore.</li><li>With the telco opting for the four-year deferment of AGR dues, it now believes there’s no need for the DoT to hold on to those bank guarantees.</li><li>This is crucial for the telco as its board meets on March 3 to discuss fundraising options.</li></ul>Vodafone Idea has reportedly asked the Department of Telecom to release ₹15,000 crore in bank guarantees as the telco’s board of directors meets on March 3 to discuss fundraising plans. According to a report by <a href="https://telecom.economictimes.indiatimes.com/news/vodafone-idea-urges-dot-to-release-rs-15000-crore-bank-guarantees/89935218">ET Telecom</a>, Vodafone Idea’s argument is now that the adjusted gross revenue (AGR) and spectrum dues <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">have been deferred</a> by four years, and the government has the option to convert this into equity, there is no need to hold up the bank guarantees for the same dues. Shares of Vodafone Idea were up by 2% as of 9:30 a.m., on Wednesday. <div type="image" title="Vodafone Idea 01_01_22 to 02_03_22." msid="89937111" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea&amp;#39;s share performance in 2022 so far&amp;lt;/p&amp;gt;"></div> At the moment, the Department of Telecom reportedly holds ₹15,000 crore in bank guarantees, against Vodafone Idea’s AGR and spectrum dues worth ₹50,339 crore. “Vodafone [Idea] has expressed the need to release bank guarantees since the AGR dues themselves have been deferred by four years,” the ET report said, quoting an unnamed government official. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> Apart from this, the telco also wants the government to freeze the date of calculation of AGR dues on the date of the Supreme Court’s judgement in the matter. Business Insider has written to Vodafone Idea for a statement in this regard. We will update the story if and when we receive a response. <cmsannotation type="cmsannotation" annotationid="Why is this important for Vodafone Idea?" comment="subhead" text="Why is this important for Vodafone Idea?">Why is this important for Vodafone Idea?</cmsannotation> The request to release ₹15,000 crore bank guarantees will free up some pressure on Vodafone Idea’s balance sheet, which is racing to get the crucial fundraising from its potential investors. <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-could-finally-get-the-much-needed-capital-infusion-from-its-british-parent-vodafone-group-plc/articleshow/89774140.cms">Earlier reports</a> had suggested that the company’s British parent – Vodafone Group Plc., – is paring its stake in Indus Towers, to infuse funds in Vodafone Idea. While Vodafone has sold 7.1% stake in the tower company, there have been no other developments with regards to it infusing funds in Vodafone Idea, so far. Now, Vodafone Idea’s board of directors is scheduled to meet tomorrow, March 3, to discuss fundraising options on the table. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">Indian government dials M for moratorium – Airtel, Vodafone Idea get a four-year relief on AGR dues</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-could-finally-get-the-much-needed-capital-infusion-from-its-british-parent-vodafone-group-plc/articleshow/89774140.cms">Vodafone Idea’s British parent could infuse capital in the telco after refusing to do so for several months</a> <a href="https://www.businessinsider.in/business/telecom/news/mukesh-ambani-and-sunil-mittal-are-fast-catching-up-while-elon-musk-struggles-for-satellite-broadband-licence/articleshow/89561185.cms">India’s richest billionaires are fast catching up while Elon Musk struggles for satellite broadband licence</a>

Vodafone Idea reportedly wants the government to release ₹15,000 crore bank guarantees ahead of its fundraising plan

<ul><li>Vodafone-Idea’s shares are up 5% after the company completed its stake sale in Indus Towers for ₹3,760 crore.</li><li>There are also reports that a consortium led by Oaktree Capital has offered around $2 billion of capital to invest in the Vodafone Group’s Indian arm. </li><li>Analysts believe that fresh investments and price hikes to improve average return per users (ARPU) are the only things that can help its survival.</li></ul>Vodafone-Idea has been bleeding subscribers for years and now even its postpaid customers are under threat of being wooed away by <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>. According to analysts, the only way out for the company is with the fresh infusion of funds — and that’s what the company is doing. Vodafone-Idea shares were up nearly 5% today morning after the telecom player completed the sale of its stake in Indus Towers for ₹3,760.1 crore in cash. There are also <a href="https://www.bloombergquint.com/business/oaktree-varde-said-to-offer-2-billion-funding-to-vodafone-idea">reports</a> that a consortium backed by Oaktree Capital has offered Vodafone’s Indian arm $2 billion — approximately ₹14,800 crore — in funding. <div type="image" title="Copy of sbi share price (1)" msid="79316655" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone-Idea share price since September 7 when it was rebranded as Vi!&amp;lt;/p&amp;gt;"></div> Both of these moves tie in with <keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword>’s announcement in September where it revealed its plans to raise ₹25,000 crore by selling its shares and debt. New funds and price hikes are the only way to save Vodafone-Idea As Vodafone Idea continues to lose subscribers, it's also running out of money. This limits the company’s ability to invest in networks and adds to subscribers’ woes who switch over to other telecom operators. “We believe this spiral can be broken only with significant ARPU increase and fund infusion,” said Edelweiss Research in its report dated October 30. According to Axis Capital, Vodafone Idea’s future depends on it. The new mega tower company In the endeavour to raise new funds, Vodafone Idea has sold off around 11.15% of its holding in Indus Towers to make way for a newly merged mega tower company. The Vodafone Group will still hold around 28.12% in the new firm. Meanwhile, <keyword id="6354287" type="UNKNOWN" weightage="20" keywordseo="bharti-airtel">Bharti Airtel</keyword>’s stake reduces from 53.51% in Bharti Infratel to 36.7% in the combined entity. "Merger of Indus Towers Limited &amp; Bharti Infratel Limited has been completed today. The combined entity, to be renamed as Indus Towers Limited, is listed on the National Stock Exchange of India Limited &amp; BSE Limited," said Bharti Airtel in its filing with the Indian exchanges. Oaktree, Varde Partners and others offer $2 billion in funding The Oaktree-led consortium is formed of many companies, including Varde Partners. Sources told <a href="https://www.bloombergquint.com/business/oaktree-varde-said-to-offer-2-billion-funding-to-vodafone-idea">Bloomberg</a> that they have made an offer to infuse between $2 billion to $2.5 billion of capital into Vodafone Idea. But, this is only one of the many offers that the company is currently considering. Vodafone Idea is in talks with several other investors. The company has been reporting losses for nine consecutive quarters. And, since the merger of 2017, Vodafone Idea is yet to come up green in its annual reports. Vodafone Idea is the weakest of three telecom giants in India, the other two being Bharti Airtel and Reliance Jio. And its survival is the only thing that’s standing in the way of the Indian telecom market turning into a duopoly. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/pubg-mobile-india-was-supposed-to-launch-today/articleshow/79315462.cms">PUBG Mobile India was rumoured to launch today — but there is no official update from the company</a> <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-ril-infosys-vodafone-idea-apollo-hospitals-emami-route-mobile-syngene-and-others/articleshow/79314343.cms">Top stocks to watch — RIL, Infosys, Vodafone-Idea, Apollo Hospitals, Emami, Route Mobile, Syngene, and others</a> <a href="https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms">Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months</a>

Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale

<ul><li>The Indian billionaire with a 27% stake in the telecom operator has reportedly written to the government. </li><li>In a letter to the government, <keyword id="39439" type="COMPANY" weightage="20" keywordseo="birla">Birla</keyword> said potential investors want to see ‘clear government intent’ to have a three-player telecom market. </li><li><keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword>’s current market capitalisation stands at ₹24,000 crore, which means Birla’s 27% stake is worth ₹6,500 crore. </li></ul><keyword id="6354955" type="UNKNOWN" weightage="20" keywordseo="Kumar-Mangalam-Birla">Kumar Mangalam Birla</keyword>, one of the promoters of the beleaguered telco Vodafone Idea, has offered to give up his 27% stake in the company to help it stay afloat. Post the merger of Vodafone and Idea, Birla owns a 27% stake in the telco, while Vodafone Plc., owns a 44% stake. At the current market capitalisation of around ₹24,000 crore, Birla’s stake is worth ₹6,500 crore. The shares of Vodafone Idea had gained a little over a percent at 1:50 p.m on August 2 (Monday). The stock has lost over a quarter of its value since the start of the year. <div type="image" title="Vodafone Idea 01_07_21 to 02_08_21." msid="84969304" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price over the last one month&amp;lt;/p&amp;gt;"></div> In a letter to the Union Cabinet Secretary, Rajiv Gauba, Birla reportedly <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/kumar-mangalam-birla-willing-to-give-up-stake-in-voda-idea-for-telcos-survival/articleshow/84968401.cms">said</a> he is willing to give up his stake in Vodafone Idea to any state-owned or a domestic financial entity, provided the entity wants to continue operations of Vodafone Idea as a going concern. “It is with a sense of duty towards 27 crore Indians connected by VIL, I am more than willing to hand over my stake in the company to any entity-public sector/government/domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern,” Birla said in his letter. Going concern refers to a business that has the assets to meet financial obligations when they fall due. Vodafone Idea is currently saddled with a debt of ₹1.8 lakh crore, a third of which is due to deferred spectrum license fee, and levy on recalculated revenue from the past to include income from non-telecom operations. Earlier last month, the <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-shares-fall-as-sc-rejects-agr-dues-re-computation-appeal/articleshow/84668288.cms">Supreme Court refused</a> to give the telco a discount on its retrospective dues, which amount to over ₹50,000 crore. This, combined with deferred spectrum dues of ₹8,292 crore means the company needs funds right now – even though <a href="https://www.businessinsider.in/stock-market/markets/news/cost-cutting-is-not-helping-vodafone-idea-fresh-funds-might-but-nothing-is-coming/articleshow/84092610.cms">nothing seems to be coming</a>. Back in September 2020, Vodafone Idea’s board had <a href="https://economictimes.indiatimes.com/markets/stocks/news/voda-ideas-rs-25000-cr-fund-raise-set-to-be-done-in-2-3-months/articleshow/78964068.cms?from=mdr">announced</a> plans to raise up to ₹25,000 crore through debt and equity. Nearly a year later, the plans are yet to yield any results. The lack of government support seems to be keeping investors at bay, which is something that Birla touched upon in his letter. “To actively participate in the fund raising, the potential foreign investors want to see clear government intent to have a three-player telecom market (consistent with its public stance) through positive actions on long-standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments and most importantly, a floor pricing regime above the cost of service,” he said. “In the absence of definitive steps in this regard, the potential investors have understandable hesitation to invest,” he added further. The government is also considering, according to reports, a slew of long-term measures to help the telecom sector. It may be willing to rewrite the rules to exclude ‘non-telecom’ revenue from the licence agreements, and allow telcos to surrender unused spectrum for a small penalty. However, it will not affect Vodafone Idea’s present dues and the current financial health. The last word on the issue is yet to be spoken. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-shares-fall-as-sc-rejects-agr-dues-re-computation-appeal/articleshow/84668288.cms">Vodafone Idea sinks nearly 10% and Airtel tumbles a bit after India’s Supreme Court denies a discount on past dues</a> <a href="https://www.businessinsider.in/stock-market/markets/news/cost-cutting-is-not-helping-vodafone-idea-fresh-funds-might-but-nothing-is-coming/articleshow/84092610.cms">Cost cutting is not helping Vodafone Idea, fresh funds might ⁠— but ‘nothing is coming’</a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-adds-nine-times-more-subscribers-than-airtel-in-april-2021/articleshow/84367596.cms">Reliance Jio picks up serious pace, adds nine times more subscribers than Airtel in April – Vodafone Idea continues its downward spiral</a>

Birla is reportedly ready to give Vodafone Idea to the Indian government

India's largest telecom operator <keyword id="6354504" type="General" weightage="80" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> added 30.5 lakh mobile subscribers in March, accelerating its momentum of February, while <keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> lost 12.12 lakh wireless users during the month, according to data released by telecom regulator <keyword id="6356988" type="General" weightage="20" keywordseo="TRAI" source="Orion">TRAI</keyword>. Sunil Mittal-led telecom company <keyword id="6354287" type="General" weightage="80" keywordseo="bharti-airtel" source="Orion">Bharti Airtel</keyword> onboarded 10.37 lakh mobile subscribers in March, raising its subscriber base to 37.09 crores in March against 36.98 crores in February. Reliance Jio added 30.5 lakh subscribers in March, as its subscriber count exceeded 43 crore, compared to 42.71 crore in February. It is pertinent to mention that in February too, Reliance Jio had added the maximum number of mobile subscribers (at about 10 lakh) among telcos, while <keyword id="15491" type="General" weightage="80" keywordseo="airtel" source="Orion">Airtel</keyword> had gained 9.82 lakh mobile users during February. A look at March data released by TRAI showed that Vodafone Idea -- which trails Reliance Jio and Bharti Airtel in the mobile market subscriber tally -- lost 12.12 lakh mobile users in March. Vodafone Idea's mobile subscriber base shrunk to 23.67 crore in March, from 23.79 crore in the previous month. Overall, the broadband subscribers' tally rose by 0.86 per cent month-on-month. "... the total broadband subscribers increased from 839.33 million at the end of February-23 to 846.57 million at the end of March-23 with a monthly growth rate of 0.86 per cent," a Telecom Regulatory Authority of India (TRAI) release said. Top five service providers constituted 98.37 per cent market share of the total broadband subscribers at the end of March 2023, including Reliance Jio Infocomm Ltd (43.85 crore), Bharti Airtel (24.19 crore), Vodafone Idea (12.48 crore). Overall, the number of total telephone subscribers in India increased to 1,172.84 million (117.2 crore) at the end of March 2023, showing a monthly growth rate of 0.21 per cent. "Urban telephone subscription increased from 652.16 million at the end of February-23 to 653.71 million at the end of March-23 and the rural subscription also increased from 517.77 million to 518.63 million during the same period. "The monthly growth rates of urban and rural telephone subscription were 0.24 per cent and 0.17 per cent respectively during the month of March-23," TRAI said. Overall teledensity in India increased to 84.51 per cent at the end of March 2023. "The Urban Tele-density increased from 133.70 per cent at the end of February-23 to 133.81 per cent at the end of March-23 and rural tele-density also increased from 57.63 per cent to 57.71 per cent during the same period," it said. SEE ALSO: <a href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-in-striking-distance-of-entering-the-top-20-richest-club-once-again/articleshow/100437220.cms">Gautam Adani in striking distance of entering the top 20 richest club once again</a> <a href="https://www.businessinsider.in/finance/news/bank-deposits-gold-sales-real-estate-to-get-a-boost-with-2000-note-withdrawal-kotak/articleshow/100429411.cms">Not just bank deposits, gold sales &amp; real estate to get a boost from ₹2,000 note withdrawal</a> <a href="https://www.businessinsider.in/business/startups/news/angel-tax-changes-to-cheer-investors-aid-late-stage-funding-say-experts/articleshow/100422848.cms">Angel tax changes to cheer investors, aid late-stage funding say experts</a>

Jio adds 3 million subscribers in March, Vodafone Idea loses 1.2 million

What if Vodafone Idea dies and can it be saved?

<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword>’s board of directors is scheduled to meet on October 21 to consider raising funds. </li><li>The meeting comes at a crucial time, when <keyword id="6375231" type="General" weightage="50" keywordseo="indus-towers" source="Orion">Indus Towers</keyword>, one of the main tower providers of Vodafone Idea, has demanded the telco pay up its dues. </li><li>Shares of the telco gained after the fundraising announcement. </li></ul>Vodafone Idea’s board of directors will meet on October 21 to consider fundraising via convertible debentures, the telco said in an exchange filing, without divulging details about the quantum of the fund raise. "We wish to inform you that a meeting of the board of directors of the company is scheduled to be held on October 21, 2022, inter-alia, to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential/private placement basis to a vendor," Vodafone Idea said in its exchange filing. Convertible debenture is a long-term debt that can be converted into equity shares after a specified period. Vodafone Idea’s latest attempt to raise funds is for investing in its network and also to pay its dues to its service providers, including Indus Towers – a tower company in which rival telco Bharti <keyword id="15491" type="General" weightage="50" keywordseo="airtel" source="Orion">Airtel</keyword> holds a 47.76% stake. Notably, Vodafone Idea’s parent company, <keyword id="105732" type="General" weightage="50" keywordseo="vodafone-group-plc" source="Orion">Vodafone Group Plc</keyword>, also holds a 21.05% stake in Indus Towers. Vodafone Idea<a href="https://economictimes.indiatimes.com/industry/telecom/clear-dues-or-lose-tower-access-indus-towers-to-vodafone-idea/articleshow/94492219.cms"> reportedly</a> owes over ₹7,000 crore to Indus Towers. The tower company has asked the telco to clear dues or risk losing access to towers from November. Reacting to the news, Vodafone Idea’s shares rose 1% to ₹8.55. This is, however, still below the ₹10 level that the government is reportedly waiting for before converting its debt to equity, as part of the <a href="https://www.businessinsider.in/business/telecom/news/telecom-relief-package-airtel-vodafone-idea-get-four-year-moratorium-on-agr-dues/articleshow/86227218.cms">telecom relief package announced in 2021</a>. The package gave telcos an option to go for a four-year moratorium on their adjusted gross revenue (AGR) and spectrum dues, among other things. <cmsannotation type="cmsannotation" annotationid="The tide that won’t stem" comment="subhead" text="The tide that won’t stem">The tide that won’t stem</cmsannotation> In 2022 so far, Vodafone Idea has lost over 12 million subscribers, according to data from telecom regulator TRAI. Its rivals <keyword id="6354504" type="General" weightage="50" keywordseo="reliance-jio" source="Orion">Reliance Jio</keyword> and Airtel continue to add subscribers at a rapid pace. <div type="image" title="Airtel Reliance Jio Vodafone Idea subscriber additions Jan-Aug 2022." msid="94963881" hostid="261" sizebytes="23682" caption="&amp;lt;p&amp;gt;Telecom subscriber trends in 2022 so far&amp;lt;/p&amp;gt;"></div> While the telecom sector is<a href="https://www.businessinsider.in/business/telecom/news/telecom-sector-to-ring-in-stability-in-q2-jio-and-airtel-expected-to-grow-stronger-vi-weaker/articleshow/94709309.cms"> expected</a> to ring in stability in Q2, analysts suggest Vodafone Idea will continue to grow weaker. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/maggi-maker-nestl-indias-net-profit-grows-8-3-to-668-crore-in-q2/articleshow/94960866.cms">Maggi maker Nestlé India’s net profit grows 8.3% to ₹668 crore in Q2</a> <a href="https://www.businessinsider.in/business/corporates/news/moonlighting-is-fine-as-long-as-it-is-unrelated-to-what-we-do-for-our-clients-says-lt-tech/articleshow/94958101.cms">Moonlighting is fine as long as it is unrelated to what we do for our clients, says L&amp;T Tech</a> <a href="https://www.businessinsider.in/business/news/jaypee-and-amrapali-groups-collapse-leaving-buyers-in-the-lurch/articleshow/94961447.cms">70,000 housing units in trouble after Jaypee and Amrapali groups head into financial trouble</a>

Vodafone Idea board to meet on October 21 to consider fundraising via convertible debentures

<ul><li><keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword> needs a combination of tariff hikes, government support and fund raising to survive in the market, say analysts.</li><li>The struggling telco has a total (adjusted gross revenue) AGR liability of ₹58,254 crore, out of which ₹50,339 crore is still due.</li><li>The gap between Vodafone Idea’s operating profit and the payments due may balloon to ₹18,800 crore in next two years.</li><li>Reports of an investment of more than $4 billion by Amazon and Verizon sent the stock rallying by 30% on September 3, suggesting that investors believe Vodafone Idea is in a dire situation.</li><li><a href="https://www.businessinsider.in/business/telecom/news/supreme-court-asks-airtel-vodafone-idea-and-others-to-pay-agr-dues-over-10-years/articleshow/77866137.cms">Check out the latest news and updates on Business Insider.</a></li></ul>Vodafone Idea is staring at a difficult road ahead. With the Supreme Court fixing a 10-year payment timeline for the adjusted gross revenue (AGR) dues, the struggling mobile service provider needs a combination of tariff hikes, government support and fundraising to survive. According to a report by Jefferies Equity Research, dated September 1, Vodafone Idea could require up to ₹18,800 crore by the end of March 2023. To do so, it will need to raise money since its existing operating profit is less than annual payments that will be due. Therefore, the Board is meeting today (September 4) to consider a proposal to raise funds. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Liabilities </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Free cash flow </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,500 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Annual AGR obligation </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7,844 crore </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Operating profit (annualised) </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,100 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cost savings from Vodafone-Idea merger </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,000 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table> Source: Company reports, Jefferies Equity Research Note: Annual AGR dues computed with an assumption of 9% interest rate per annum. But beyond FY21, the cash gap will widen to ₹4,200 crore and by FY23, it will balloon to ₹18,800 crore, the report states. <div type="Article" hostid="261" msid="77866137" title="Supreme Court directs Airtel, Vodafone Idea and others to pay AGR dues over 10 years" mstype="2" mssubtype="0"></div> What does Vodafone Idea need to do to survive? There are two ways for Vodafone Idea to continue its operations – tariff hikes and additional fund raising. In the first round of tariff hikes of 30%, Vodafone Idea’s operating profits increased by 20%. “Vodafone Idea may need additional support from the government in the form of a further 2-year moratorium on deferred spectrum liabilities to remain solvent beyond FY23,” the report added. <div type="Article" hostid="261" msid="76766763" title="Vodafone Idea News - Only cash can save Vodafone Idea from a slow death" mstype="2" mssubtype="0"></div> Apart from this, fundraising also remains a critical piece of the puzzle for the company. <a href="https://www.livemint.com/companies/news/amazon-verizon-may-give-voda-idea-lifeline-11599102122521.html">Reports</a> of an investment of more than $4 billion (approx. ₹30,000 crore) from US giants Amazon and Verizon led to a 30% jump in the company’s share price on September 3. Another <a href="https://www.bloomberg.com/news/articles/2020-09-03/vodafone-s-india-unit-is-said-to-plan-1-5-billion-fundraising">report</a> suggested that the company is planning $1.5 billion (approx. ₹7,400 crore) fundraising via stake sale. Vodafone Idea’s board is assembling today to evaluate any and all fundraising proposals it has received. If this deal goes through, Vodafone Idea will have enough room to breathe easy for now and meet its AGR obligations. It could also allow the company to undertake capital expenditure required to boost its network quality and stem the outflow of subscribers. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-how-much-cash-does-vodafone-idea-need-to-survive/articleshow/76766763.cms">Only cash can save Vodafone Idea from a slow death</a> <a href="https://www.businessinsider.in/business/telecom/news/the-agr-verdict-could-lead-to-a-reliance-jio-and-airtel-duopoly-in-the-indian-telecom-sector/articleshow/77883407.cms">The AGR verdict could lead to a Reliance Jio and Airtel duopoly in the Indian telecom sector</a> <a href="https://www.businessinsider.in/tech/news/google-explores-5-stake-in-struggling-vodafone-idea-report/articleshow/76070370.cms">Vodafone Idea shares surge more than 30% after Google reportedly considers a stake in the debt-laden telco</a>

You Searched For "Vodafone Idea Stake Sale" and got 11 results

Ahead of FPO, Vodafone Idea garners Rs 5,400 cr from anchor investors

PTI

The enormous gap between Vodafone Idea on one hand, Airtel and Jio on the other

Rounak Jain

Vodafone Idea shares hit 25% upper circuit after govt agrees to convert ₹16,133 cr dues into equity

Rounak Jain

Vodafone raises stake to 47.61% in Vodafone Idea through subsidiary Prime Metals

PTI

Vodafone Idea reportedly wants the government to release ₹15,000 crore bank guarantees ahead of its fundraising plan

Rounak Jain

Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale

Prabhjote Gill

Birla is reportedly ready to give Vodafone Idea to the Indian government

Rounak Jain

Jio adds 3 million subscribers in March, Vodafone Idea loses 1.2 million

PTI

What if Vodafone Idea dies and can it be saved?

Business Insider India

Vodafone Idea board to meet on October 21 to consider fundraising via convertible debentures

Rounak Jain

Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report

Rounak Jain

Popular Keywords

Buying Guides