This is because the government has changed it worth it ₹The $3695 billion telecom operators must now have a total of more than 66% less of their statutory dues over the next three years after the moratorium expires later this year. However, analysts say the company must meet annually ₹Payment obligations of 4.3 trillion to the government (spectrum and adjusted total membership fees) paid to the government in fiscal 28-31.
Without a fair conversion, Vodafone’s idea of dealing with the government’s payable meeting was originally ₹FY26 is 110 million. For FY27 and FY28, the spectrum-related Outgo will be ₹250 million.
However, through the conversion, the company’s spectrum dues will be reduced to ₹$5 billion in fiscal 26, ₹50 million in fiscal 27, and ₹According to estimates by brokerage Citi Research, 1.5 billion in fiscal year 28.
However, the brokerage said the company must pay annually ₹Spectrum acquisitions and annual adjustments total revenue (AGR) payments after 2021 are Rs 22 billion ₹165 billion.
“In general, we think it’s a timely and timely display of government support, which should provide VI (Vodafone’s idea) with a large amount of cash flow over the next 3 years and help it complete its bank debt increase,” analysts at Citi Research on a NOTY on Monday.
“This should help VI take it one step further from the bank’s extended debt.” It’s worth noting that the company has been trying to increase bank debt,” the analyst added. ₹250 million.
More government help
However, some analysts have observed that the government may have to convert more dues into equity by the end of FY26 due to higher spectrum and AGR payments. ₹FY2900 billion and its surroundings ₹40 billion membership dues in fiscal 28. They say this because the company’s annual revenue will not be able to serve pending dues.
“The structural problem of bringing a company’s long-term viability to a company remains, as converting it into sustainable players will require multiple heavy tariffs, which can increase ARPU (average revenue per user) ₹380 Finance ₹163 in 3QFY25).
According to the broker, to meet the government’s annual interest rate hikes are required ₹The 4.3 trillion payment obligations and internal capital capital expenditures for fiscal 28-31 can help companies gain subscribers.
If the government decides to make another round of equity conversion, the telecom operator will become a public sector undertaking (PSU). “At present, the government does not currently occupy Vodafone’s board seat in the 49% stake,” a government official said. After the equity conversion, the Vodafone Group’s shares will drop from 24.39% to 16.07%, while the Aditya Birla Group’s shares will drop from 14.41% to 9.5%. In addition, the non-government minority equity will drop from 38.6% after this conversion to 25.44%.
As of December 2024, Vodafone’s total debt has existed ₹2.3 trillion. that is ₹77,000 million is the responsibility of AGR (adjusted total income) and ₹1.4 trillion is spectrum responsibility.
Government support positive for the department
The agency consulting firm said the government’s conversion is still active and will avoid any double monopoly in the department. “From the overall scenario analysis, it would be impossible to breathe Vodafone’s ideas, and the duo would hurt consumers.”
“If the government does not have a convert, it will lose the opportunity to restore the upcoming dues. Banks will be lost, and consumers in general will be hurt. At least, it is possible to restore the company now.”
“Equity conversion, while positive, does not mean the company is not in the forest. It will have to raise more capital or bank debt to serve up the upcoming statutory dues and remain competitive,” said Shriram Subramanian, MD, founder and doctor of Ingovern Research Services.
Citi Research retains Vodafone’s idea of buy/high risk rating, with its share price target ₹12. JMFinancial has maintained a sell rating on the company’s shares.
