Debt-ridden Vi (Vodafone-Idea) is likely to get ₹20,000 crore funds over the next fortnight. The promoters would likely add ₹7,000-8,000 crore of the ₹20,000 crore fund infusion. The remaining would be received in parts from the bank guarantees under the recent government package, media reports said.
According to sources, the company would go for a fresh round of fund infusion after witnessing a marginal improvement in its average revenue per user (ARPU). The company’s ARPU in April-June was at ₹104 per user.
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The company had been eyeing to raise up to ₹25,000 crore.
Earlier, managing director Ravinder Takkar noted a renewed interest from investors following the reforms in the telecommunication sector. The Department of Telecommunications (DoT), in its reforms, had cut down the need for bank guarantees in future auctions. A moratorium of four years on payment of spectrum purchased previously (except in 2021), and adjusted gross revenue was offered. Those that avail of the four-year moratorium will have to pay interest calculated from October 1, 2021.
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According to Takkar’s statement in September, the fresh telecom package opens the door for fresh investments. He said, “There were concerns with respect to the investments in India and in the telecom sector even though they liked the sector and they liked the country. Those fears have now been removed. We think there is an opportunity for additional fundraising.”
Since then, the company has been requesting support from the government — since the direction by the Supreme Court to pay AGR, internet and penalty for non-payment and dues in yearly instalments from April 1, 2021 — by either through moratorium in payment of dues or setting a floor price on telecom tariffs.