Vodafone Idea may need more funding by 2Q FY21 to plug Rs 7,600 Cr gap: Analysts

KOLKATA: Vodafone Idea, weighed down by heavy debt and spectrum repayment dues, may need to go for another round of equity infusion by the second quarter of FY21 itself to plug a potential Rs 7,600 crore ($1.06 billion approx) funding gap, analysts said.

The beleaguered telco, they said, would require a bunch of positives to avoid another equity infusion, starting with a steep recovery in its average revenue per user (ARPU), rake in over Rs 10,000 crore from monetisation of fibre assets and refinance debt coming up for repayment.

Kotak Institutional Equities said an analysis of Vodafone Idea’s debt and deferred spectrum repayment schedules, based on the telco’s FY19 annual report suggests the “need for another round of equity infusion as early as the second or third quarter FY21”.