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Dolat Capital: Vodafone Idea’s Rs 25,000 Crore Fund Raise To Be An Uphill Task

Dolat Capital: Vodafone Idea - Success In Fund Raise Coupled With Industry Tailwinds, No Slippage In Execution Key; Uphill Task

Vodafone Idea SIM card packets are arranged for a photograph at a store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
Vodafone Idea SIM card packets are arranged for a photograph at a store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Vodafone Idea Ltd. board has approved equity fund raising of Rs 150 billion and network call distributors of Rs 150 billion.

However total fund raise will not exceed Rs 250 billion. We anticipated a funding shortfall of approximately Rs 105 billion upto FY22 end.

Rs 250 billion fund raise coupled with approximately Rs 69 billion from Vodafone Group Plc for its share of adjusted gross revenue (AGR) liability and Rs 40 billion from Indus stake sale should enable Vodafone Idea to sail through upto FY22.

In the interim, steep increase in tariffs (approximately 20% compound annual growth rate for four years) coupled with no slippage in execution and costs rationalization measures would be inevitable for its sustainability.

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Dolat Capital Vodafone Idea Company Update.pdf

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