New Delhi: With extraordinary contributions from almost Rs 1.6 lakh crore in spectrum payments and AGR contributions, the government might be the biggest loser if the idea of vodafone collapsed under paralyzed losses and severe debt.
Hit for the government does not stop here.
If someone adds the RS 23,000 crore circulating payable to the bank, the impact can be one of the largest in the history of the company as a large part of the loan (65-70%) extended by the government-managed lender.
Banks have extended further guarantees worth thousands of crores to companies, which also run the default risk.
“The Department of Telecommunications and National Values will lose largely if there is a collapse of Vodafone’s idea Attress, “An analyst with a leading broker to TOI.
Cumulatively, the company currently has a 1.8 lakh crore debt, and has been financially bleeding with losses pegged at Rs 7,000 Crore during the March quarter.
Peak debt 1.8 lakh crore Rs, according to ICICI Securities.
“We see payment of obligations immediately present, while the availability of funds remains a challenge,” he said.
According to numbers originating from various analysts and financial results of the idea of Vodafone, at RS 107, the company remained quietly placed with the lowest average income per user (ARPU) among his colleagues.
Reliance Jio reported Arpu RS 138 and Bharti Airtel at Rs 145, although the latter has said time and once again that at least Rs 200 ARPU is needed to treat the capital solid sector back to health.
Vodafone’s poor outlook was proven after the SOS call provided by the promoters, which has refused to invest further into the company, and asked the government to support its survival.
Goldman Sachs said that it expected Capex to the idea of Vodafone to stay under pressure, “resulting in a sustainable market share loss”.
It is said that between December this year and April 2022, the company has around RS 22,500 Crore contributions (debt, AGR and Spectrum).
The government may have to take the biggest hit if the vodafone idea fails
