Vodafone Idea may have to pay around Rs 6,000 crore per year if AGR repayment spread over 15 years: Analysts

Vodafone Idea is estimated to face an annual outflow in the Rs 5,900-6,253 crore range, depending on 8% or 9% interest rate, if the nation’s top court allows it to clear its balance adjusted gross revenue (AGR) dues of around Rs 50,400 crore over 15 years, say analysts. Shares of the telco plunged nearly 9% in intraday trade, underlining the uphill task before the cash-strapped carrier even in the case of relief from the top court which could stave off immediate bankruptcy.
Such a scenario would also require the telco to at least double its current average revenue per user (ARPU) by FY23, when its two-year deferred spectrum payment moratorium ends, hold on to its near 291 million subscribers, and net a significant capital infusion to be competitive in the market, else risk being relegated to a regional player at best, say analysts.
In a report, Credit Suisse added that Voda Idea would need “meaningful equity infusion by the 2HFY23, apart from strong operational improvement even if the telco manages to secure a 15-year deferred (AGR) payment plan.