As per IIFL Securities, Vodafone Idea Limited (VIL) landing up in the National Company Law Tribunal (NCLT) cannot be ruled out.

Further, it added that this could be triggered by VIL approaching the tribunal or the Department of Telecommunications (DoT) invoking bank guarantees.

This could result in operational disruption as current promoters will have to cede ownership.

Further, the firm added that, as per industry reports, DoT, in its plea, had warned that a VIL shutdown and resulting mass number porting could overwhelm the other surviving telcos at a time when the economy may face pressure from Covid-19, this is one disruption the country could have done without.

IIFL Securities estimates VIL’s bank guarantees to be in the range of Rs 160 billion -180 billion. Further it added “Licence conditions allow DoT to invoke bank guarantees if it ends up defaulting on AGR dues. Based on public disclosures of banks, we assess the fund based and non-fund based exposure of different banks to VIL.”However, the firm added that Airtel is on a “strong wicket”.