Vodafone UK may offer Rs 2,000 crore equity topup to Vi
Vodafone Idea (Vi) out of the proceeds of a likely sale of its balance 3.1% holding in Indus Towers, said analysts who added that this may be used to clear a portion of the Indian telco's dues to the tower company.
Vi may also make more substantial payments to Indus towards cutting its dues after the telco raises debt of ₹23,000-25,000 crore through term loans as planned, they added.
After the recent sale of its 18% stake in Indus, UK's Vodafone holds 3.1% of the tower company and is said to be in talks with Bharti Airtel to sell these shares, people familiar said. Earlier talks between the two parties got stuck over valuation differences but the latest discussions may yield results, said the people cited above.
«An upcoming event catalyst that will now be in focus, in our view, is a potential equity infusion into Vi (up to ₹2,000 crore ballpark) once the balance 3% stake in Indus is sold by its UK promoter, which can be used by Vi to partly clear its past dues to Indus,» Citi Research said in a note seen by ET.
Before the last ₹360 crore payment toward old dues in the March quarter of FY24, Vi's past dues to Indus were pegged at around ₹10,000 crore, as per Ambit Capital estimates. Vi accounts for 35-40% of the tower company's revenue.
Indus shares ended 3.9% higher at ₹389.75 on the BSE Monday, giving it a market capitalisation of ₹1.05 lakh crore.
At this level, Vodafone UK's 3.1% stake will cost Airtel Rs 3,256.09 crore. Airtel shares closed 0.5% higher at Rs 1,453.20 on the BSE.
Vi CEO Akshaya Moondra
