A ray of hope for Vodafone Idea, can get Rs 11060 crore

by Jeremy Spirogis
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New Delhi. Another silver lining for the Vodafone Idea going via the disaster. Promoters of Vodafone (UK's Vodafone Group PLC and Aditya Birla Group) can make investments $ 1.5 billion or about Rs 11,060 crore within the firm. However, promoters will put money into the corporate solely when the federal government reduces the excellent AGR on Vodafone to its personal valuation. This signifies that solely the excellent AGR is recovered as per Vodafone's personal valuation. They additionally want a number of years to repay AGR dues.

– Vodafone Idea could be closed, there is just one means left

Signs of progress could be discovered

According to a report within the Economic Times, based on CLSA, a brokerage agency, Vodafone can see indicators of progress once more with the elevated cell tariff lowering AGR dues and straightforward phrases to repay. <! –

                 According to the CLSA, this may also give Vodafone promoters an opportunity to rethink their determination underneath which they don’t seem to be investing within the fairness of the corporate. The new funding will enhance the situation of Vodafone and it will likely be capable of compete with Jio and Airtel.

How a lot is AGR excellent on Vodafone

According to Vodafone Idea's latest valuation, it has an impressive AGR of Rs 21,533 crore, which is far decrease than the federal government's valuation of Rs 58000 crore. Of this, the principal quantity is simply Rs 6854 crore, which has been paid by Vodafone. However, regardless of authorities reduction, Vodafone's long-term existence rests on new fairness funding by its promoters, because it doesn’t have the cash to pay AGR.

Knowledge has already instructed in regards to the want for funding

A report got here out final month citing consultants that Vodafone Idea is unlikely to outlive except its promoters make investments new fairness capital within the firm. A senior Supreme Court lawyer had mentioned that Vodafone Idea may method the NCLT (National Company Law Tribunal) and if it accepted the case, the cost could be banned underneath the chapter regulation and no cost to Vodafone Idea should do it.

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