Telecom operator Vodafone Idea has approved a plan to raise fresh capital via equity and debt worth ₹25,000 crore, which will give it a fresh lifeline to battle well-muscled rivals such as Reliance Jio and Bharti Airtel. The money will be used to help it pay government dues and boost investments towards its network operations. In a ruling this month, the Supreme Court has allowed telecom companies 10 years to pay up their adjusted gross revenues (AGR), with 10 percent of the total dues to be paid by March 2021.
For Vodafone Idea, the situation becomes even more precarious as it continues to lose subscribers to rivals, its AGR dues are higher than Bharti’s and has higher debt estimated at ₹115,500 crore. The only way it will remain viable is through tariff hikes in coming quarters and by raising more capital.
Vodafone Idea posted