Without fundraising, Vodafone Idea may face Rs 6,400-cr cash shortfall by September, say analysts

KOLKATA: Vodafone Idea (Vi) could be staring at a potential Rs 6,400 crore cash shortfall by September 2023 if it is unable to close its much-delayed fundraise quickly or raise tariffs, say analysts. They added that in absence of an early capital raise, Vi would need to boost its average revenue per user (ARPU) sharply to meet its upcoming Rs 9,600 crore debt repayment in the next 12 months.

“Per the company (read Vi), $1.2 billion (Rs 9,600 crore) of debt is payable by Sep ’23, while gross cash balance as of Sep ’22 is Rs 200 crore… So without a capital raise, ARPU for Vi will have to rise by Rs 35 for the company to be able to meet its immediate repayment needs by Sep ’23 (including capex, debt and interest expenses),” Goldman Sachs said in a note.