Indus expects Vi to clear full dues worth Rs 5,700 cr soon, open to payment in tranches
Indus Towers expects that Vodafone Idea will pay its entire past dues amounting to around Rs 5,700 crore soon with the latter securing funding. However, the payment may happen at one go or in tranches.
Asked about Vodafone Idea (VIL) fundraising plans and what it means for Indus Towers, Prachur Sah, Managing Director & CEO, Indus Towers told ET, “We are pleased to see the positive developments on Vodafone Idea’s fundraise and expect that VIL will clear over-dues of Indus in its entirety.”
To a query around VIL’s plans to rollout 5G, he added, “We remain committed to supporting all our customers in their growth plans and are best positioned to do the same for VIL.”
The financially struggling company is looking to raise around Rs 45,000 crore through a mix of equity and debt. The company will raise Rs 18,000 crore through the follow-on public offer (FPO) and another Rs 25,000 crore through debt. The company has already approved raising Rs 2,075 crore from a promoter entity through a preferential share issue.
VIL has announced to commence 5G rollout in coming 6-9 months and plans to reach 40% of revenue coverage in 24-30 months. It will utilise Rs 5,720 crore for capex from the FPO funding.
“If Vi expands its network, Indus's growth outlook will improve. Assuming all the (new) tenancies are set up on its existing towers by FY26, then Indus would deliver a tower/tenancy CAGR of 6%/7% over FY24-27 and FCF (free cash flow) generation of Rs 20 per share in FY26 with a marginally better 3% CAGR in FCF over FY27-34,”
