VIL's equity plan gives some breathing space but woes far from over

Significant rise in ARPU needed to ease debt worries

vodafone, idea, VI
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Devangshu Datta
Vodafone Idea’s (VIL) decision to convert government dues into equity and issue shares worth Rs 16,000 crore (at par value of Rs 10 per share) alters the financial picture in the telecom sector. While it gives VIL breathing space for four more years, the company still has a crippling debt burden. This leaves it poorly placed versus its two private sector rivals, Bharti Airtel and Jio. Airtel opted not to take the government offer to convert dues into equity, indicating that it is confident that it can service those debts. On operational variables, too, VIL is well behind Airtel and

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First Published: Jan 12 2022 | 9:02 PM IST

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