VIL’s position to remain tough till meaningful capital infusion: Report

Vodafone Idea’s cash flow analysis indicates that its situation may remain challenging even after any relief measures, and the telco needs “meaningful capital infusion” with a long gestation period to become competitive, a report by Credit Suisse said on Wednesday.

The report expects Airtel to be “well placed” in either of the scenarios, of two-private-operator sector, or three private operators post an industry repair.

The note by Credit Suisse on the Indian telecom sector said there has been increasing interest among investors to evaluate valuations of Bharti Airtel and Indus Towers under two situations, in the wake of recent developments. The developments include SC dismissing petitions of telcos on AGR, Kumar Mangalam Birla stepping down as Chairman of Vodafone Idea, as also telcos’ promoters reportedly expressing potential inability to raise funds.