Vodafone and Idea in big trouble! Need 70000 Crore and also Government support

Vodafone Idea needs at least Rs 70,000 crore to run. At the same time, it needs relief from the government for Adjusted Gross Revenue (AGR). The company is facing a lot of money problems at the moment.

Need to support the government

The report says the government needs to support this. Under this he will have to give relief for AGR. The amount of AGR has to be reduced. Vodafone Idea has to pay Rs 60,000 crore as AGR for the next ten years. It has to be given as an instalment every year. The company had incurred a huge loss of Rs 7,000 crore in the March quarter.

The company’s stock rose nearly 5%

The company’s stock, however, was trading at Rs 9.18, up nearly 5% on Monday. While last week it had gone up to Rs 8.18. It had declined by 15% in two days. The two currently have a joint venture with UK’s Vodafone and India’s Aditya Birla Group. It had announced to raise Rs 25,000 crore in September last year. But so far it has not succeeded.

Fundraising plan

The company is going to raise this money by selling loans and shares. In a recent letter to the Department of Telecom, Vodafone Idea said that its economic condition is bad and at the same time the telecom sector is going through a bad period. In such a situation, it is facing a lot of difficulties in raising Rs 25,000 crore.  She said that she will not be able to pay the instalment of AGR in April next year. This seems to be the case at the moment. The company also has to pay Rs 8,292 crore for spectrum next year. He has to repay a total of Rs 28,000 crore by next year. It has debt. Non-convertible debentures (NCDs) are liable. Spectrum as well as AGR has money. Ambit Capital said that if Vodafone Idea fails to raise money, it could lead to more problems. It may need a moratorium.

The number of customers is decreasing

The number of customers of the company has been declining sharply for the last 2-3 years. Vodafone is constantly losing money due to Jio’s cheap plan and Airtel. Goldman said Vodafone Idea could face a shortfall of Rs 23,400 crore by April 2022. Because it also needs to pay Rs 22,500 crore.

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