With pending dues of almost Rs 1.6 lakh crore in range installments and AGR levy, the government might be the greatest washout if Vodafone Idea implodes under devastating misfortunes and heavy debt.
The hit for the government simply doesn’t end here. In case one adds the pending Rs 23,000 crore owed to the banks, the effect could be one of the greatest in corporate history as an enormous piece of the credits (65-70%) is reached out by state-run moneylenders. The banks have additionally expanded guarantees worth huge number of crores to the organization, which likewise risk defaults.
“The telecom department and the national exchequer would lose the most in case of a collapse of Vodafone Idea. The picture looks grim considering the poor recoveries and unrealised outstanding after the collapse of Anil Ambani’s Reliance Communications and Aircel, where too several thousands of crores of rupees remain locked. Taxpayers stand to lose the most,” told an analyst with a leading brokerage to media.
In total, the company presently has a debt of Rs 1.8 lakh crore, and has been draining monetarily with losses fixed at Rs 7,000 crore during the March quarter. The debt tops Rs 1.8 lakh crore, as indicated by ICICI Securities. “We see payment of liabilities coming soon, while fund availability remains a challenge,” it said.
As indicated by numbers sourced from different examiners and Vodafone Idea’s monetary outcomes, at Rs 107, the organization remains problematically positioned with the most reduced normal income per user (Arpu) among its companions. Dependence Jio revealed Arpu of Rs 138 and Bharti Airtel at Rs 145, however the last has said consistently that essentially Rs 200 Arpu is expected to nurture the capital-escalated area back to health.
Vodafone Idea’s helpless standpoint was obvious after the SoS calls given by its promoters, who have would not make any further interests into the company, and are requesting that the government supports its endurance. Goldman Sachs said that it expects capex for Vodafone Idea to stay under tension, “resulting in continued market share loss”. It said that between December this year and April of 2022, the company has about Rs 22,500 crore of dues (debt, AGR and range) payable.