Funds from Voda, Infratel-Indus merger may aid VIL’s upfront payment, say analysts

The planned merger of Bharti Infratel and Indus Towers and additional payment from Vodafone Plc may help crisis-hit Vodafone Idea make part upfront deposit for securing staggered payment of balance AGR dues, if the apex court permits, analysts said.

Hearing the AGR case on Thursday, the Supreme Court had said private telecom companies including Bharti Airtel and Vodafone Idea must come out with a “reasonable payment plan” and make some payment to “show their bonafide”.

“Bharti Airtel and Tata Tele have deposited 41 per cent and 25 per cent of DoT demand, and Vodafone Idea (VIL) has done only 12 per cent,” ICICI Securities said in a note on Friday.

VIL can source funds from Vodafone Plc’s unpaid indemnity of Rs 67 billion (or Rs 6,700 crore) and can receive Rs 36 billion (Rs 3,600 crore) for its Indus stake on merger between Bharti Infratel and Indus Towers, it said.