Vodafone Exit From Indian Market Now in Talks as Merged Company Continues to Lose Subscribers

Vodafone Idea Dismisses Debt Recast

A few days back, there were also reports that Vodafone Idea had approached its creditors for a debt recast on which it has issued a clarification. Vodafone Idea said that the reports which claim that the company approached its creditors for a debt recast a factually incorrect and baseless. The company further added that it has not approached its creditors or asked for the reworking of payment terms. It is also worth noting that the recent Supreme Court order on the definition of Adjusted Gross Revenue (AGR) has also hurt the telecom operator. After the verdict was passed, Vodafone Idea is now required to pay Rs 23,309 crore in dues. The telecom operator also has to pay this amount only in a matter of three months. After the Supreme Court decision, the Vodafone Idea share took a sharp dip to hit its 52-week low, which was Rs 3.66. The market cap of the company currently stands at Rs 11,091 crore, whereas the investments in the company run into billions. After the verdict of the Supreme Court, Vodafone Idea has already shown its disappointment.

Telco Asks for Relief from the Government

The company, in its statement, had also said that the new judgement from the Supreme Court has deep implications for the industry which is already under heavy financial burden. It said that billions of dollars have been spent on creating high-quality networks across India, but the new decision puts undue pressure on the two telecom companies whereas, the others have exited the telecom space altogether. The company also said that it would reach out to the government to ask it to mitigate some of the pressure that has fallen on to the shoulders of the two major telecom companies. The company has also hit another roadblock with the merger of Indus Towers with Bharti Infratel not happening anytime soon and the merger not meeting the FDI regulations before the deadline of October 24.