Hard choices for Vodafone

The Supreme Court’s order last week asking telecom companies to pay Rs 92,000 crore to the government is likely to hit Vodafone Idea Ltd the most. The operator may have to again opt for a large equity fund raising round to meet the payout, according to brokerages.

Analysts also feel that much will also depend on the government. If the Centre does not take steps to reduce the impact, it will have a negative effect on the industry.

Last Thursday, the apex court had ordered telecom players, including Bharti Airtel and Vodafone, to pay the Centre around Rs 92,000 crore in dues, which includes penalty and interest. The order was related to a dispute on the definition of adjusted gross revenue (AGR).