Indus Towers wants Vodafone Idea to settle all dues in one go

livemint.com:

MUMBAI, NEW DELHI : Indus Towers expects Vodafone Idea to clear all its pending dues in one go, the top executive of the tower provider said on Tuesday, a day after the country's third-largest telecom operator said that the proceeds of the ₹18,000-crore follow-on public offer (FPO) would not be used for paying vendor or government dues. "We are pleased to see the positive developments on Vodafone Idea’s fundraise and expect that VI will clear over-dues of Indus in its entirety. We remain committed to supporting all our customers in their growth plans and are best positioned to do the same for VI," Indus Towers' managing director and chief executive Prachur Sah told Mint in response to queries.

Sah did not comment on the ongoing payment agreements between the companies basis which Vodafone Idea has made payments in the past quarters, or whether there would be any changes made to these agreements. Indus had collected ₹300 crore from VI on account of outstanding past dues in addition to 100% of the monthly collection, in the quarter ended December 2023. In that quarter, it had an impact of ₹2,270 crore due to provision for doubtful debts and ₹493 crore from an exceptional item.

Industry insiders peg Vodafone Idea's dues to Indus Towers at about ₹7,000 crore. Vodafone Idea chief executive Akshaya Moondra said at the launch of the FPO that the fundraise will be used primarily for capex requirements. “We cannot use the funds for making any payments to promoter or promoter group companies and that would be the governing factor," Moondra had said.