Google’s 5 per cent investment would not provide relief to Vodafone Idea: Report

Google’s 5 per cent investment, even if it materialises, would be inadequate to solve debt problems at Vodafone Idea, according to a Credit Suisse report.

“While Google’s investment into VIL would be incrementally positive, we do the not think a 5 per cent stake (₹840 crore based on current market price) would provide any meaningful relief to VIL’s debt problems,” it said.

“We note that the company has debt of ₹1.03 billion as of December 19, apart from ₹530 billion AGR dues (as per DOT) and a net debt to EBITDA of 9.6 times (12.9 times including AGR dues) and, hence, would need sizeable investment to be a going concern,” it added.