‘Open, favourable’ to government’s equity plan: Voda Idea CEO

NEW DELHI: Vodafone Idea, saying that it will save over Rs 40,000 crore through the telecom moratorium on statutory payments, on Wednesday asserted that the company will “survive and thrive” even as it stays “open and favourable” to a bailout proposal, which enables the government to pick up a minority equity in the company in lieu of the interest liability on its dues.
Ravinder Takkar, MD & CEO, Vodafone Idea, said the company will now start raising funds to the tune of Rs 25,000 crore as it looks to make investments in the business and work towards network expansion and potentially 5G.
The fund-raise and capex investments would happen as the company raises tariffs in an “organic” manner to work its way through to an ARPU (average revenue per user) of Rs 200 in the short term, and Rs 300 in the medium term. It had an ARPU of Rs 104 in the last reported quarter.
“The announcement by the government is literally a game-changer, and we intend to start the fund-raise exercise very soon,” Takkar said, adding that the promoters are “supportive” of the exercise

Leave a Reply