Vodafone Idea's aggressive fundraising signals pricing war here to stay

Analysts feel that even after an equity infusion of Rs 250 billion, VIL's net debt would remain high

Vodafone Idea Ltd’s (VIL’s) recent fundraising plans signal that telcos are unlikely to mellow down the pricing war anytime soon.

Analysts feel that with fresh capex plans by telcos, the market would witness an increased competition and the average revenue per user (ARPU) would continue to remain under pressure.

Vodafone Idea has indicated during its maiden quarter results (September quarter) post the merger that it intends to raise Rs 250 billion to execute its market strategy. Analysts feel capex spends by telcos are likely to reach new highs as chief aggressor Reliance Jio has indicated further spend, while Airtel will