In October last year, Indian telecom companies began rolling out 5G services, promising breakneck speeds as the country finally leapfrogged into the next telecom generation.
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Vodafone Idea: The move is a relief for Vi, which is yet to tie up its much needed funding needed to pay vendors, the government, expand its 4G coverage and also invest in its pending 5G rollout.
Vodafone Idea: “Basis Vi’s disclosures, it faces large payouts in 2QFY24.of the estimated Rs 4,300 crore outgo, Rs 2,600 crore is towards debt repayments (maturing) and a Rs 1,700 crore instalment related to 5G spectrum, which may exert pressure on payments to Indus, unless Vi raises funds,” IIFL Securities said in a note.
Accordingly, IIFL has cautioned that Indus receipts from Vi could fall short unless there is significant fundraising at the telecom operator. On Monday, shares of Indus closed 1.12% lower at ₹172.05 on BSE, while Vi ended 0.12% higher at ₹8.34. At its fiscal first-quarter earnings call last week, Indus top management said the tower company was in constant dialogue with Vi, urging the key customer to clear its past dues estimated at ₹9,500 crore.