On tariff hike, the company indicated at the possibility of rate increase, saying that prices need further uptick to generate reasonable returns and support future investments. “Before the recent tariff hike in July 2024, the last tariff hike was taken in Nov 2021. Tariffs in India are lower than other comparable markets in the world. Further given inflation, prices need to catch up.”

Earlier this week, the board of Vi approved proposal to raise up ₹1,980 crore through issuance of equity shares and convertible securities to promoter entities, Omega Telecom Holdings Private Limited (up to ₹1,280 crore) and Usha Martin Telematics Limited (upto ₹700 crore). The company will issue up to 175.53 crore equity shares of face value of ₹10 each at an issue price of ₹11.28 apiece.

Last week, Vodafone Plc, a promoter entity of Vi, had sold its remaining 3% stake in mobile tower installation company Indus Towers for ₹2,802 crore. The seller intended to use part of the proceeds to repay its own existing debts.

Vodafone Idea has gross debt of ₹2.1 lakh crore ($26 billion), of which only about $600 mn is owed to banks and financial institutions, with the remainder payable to the government of India towards spectrum ($17.2 bn) and AGR (adjusted gross revenue) dues ($8.5 bn). These government dues are currently under moratorium until October ‘25, after which the telecom operator will have substantial payment obligations. The company’s recent filings show that its repayment obligation would be $3.3 bn in FY26, rising to $5 bn in FY27 (excluding dues not under moratorium).

Taking into account repayments such as interest expense on new debt, minimum spectrum dues, and other payables, Goldman Sachs estimates Vodafone Idea to have a maximum capex potential of ₹62,600 crore ($7.5 bn) by Mar ’25.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

Vodafone Idea capex plan

Vodafone Idea unveils ₹55,000 cr capex plan for next 3 yrs; stock rises 2%