According to IIFL Securities, Vodafone Idea Limited (Vi) is facing payouts of Rs 43 billion towards debt and 5G airwave instalments in the second quarter (Q2) of the fiscal year (FY) 2023-24. This will likely impact the operator’s future payments to Indus Towers Limited, especially if it fails to close its long-pending fundraising quickly.
The brokerage firm said in a note that basis Vi’s disclosures, it faces large payouts in Q2 FY24. Of the estimated Rs 43 billion outgo, Rs 26 billion is towards debt repayments (maturing) and Rs 17 billion instalment related to 5G spectrum, which may exert pressure on payments to Indus Towers, unless Vi raises funds.
IIFL Securities added that redemption of Rs 8 billion, out of the Rs 16 billion optionally convertible debentures (OCDs) issued to American Tower Corporation Telecom Infrastructure Private Limited, is also due in Q2. Vi though has the flexibility to skip payment, and the tower company can subsequently exercise an option of converting the OCDs into equity.
