Vodafone Idea shares trade nearly 4% post rebranding announcement

Ravinder Takkar, MD & CEO, Vodafone Idea Ltd said, "Vodafone Idea came together as a merged entity two years ago. We have, since then focussed on integrating two large networks, our people and processes. And today I am delighted to present Vi, a brand that will bring important meaning to lives of our customers."

The Supreme Court last week refused to allow the telcos to make the payments for their AGR dues over 20 years. The court has instead given the telcos 10 years to pay the dues.

Vodafone Idea has been the most affected company in terms of the AGR dues to be paid. It has paid Rs 7,854 crore against a demand of Rs 58,254 crore, leaving a balance of Rs 50,400 crore that is yet to be paid.

Nitin Soni of Fitch Ratings said that the SC's verdict could gradually lead to a "collapse of Vodafone Idea" and hasten the telecom market's move towards a "duopololy".

"For 10 years, they will have to make a payment of USD 700-800 million a year. Their EBITDA is insufficient to pay

Ahead of the AGR verdict, Vodafone Idea decided to sell its 11.15 percent stake in Indus Towers for cash as Bharti Infratel decided to go ahead with the merger plan.

The company has already sanctioned sale of equity and non-convertible debentures in a bid to raise over Rs 25,000 crore on an immediate basis given the precarious situation of the balance sheet right now.

In an exchange filing, the telecom operator said while the company constantly evaluates various opportunities for enhancing the stakeholders’ value, there is no such proposal being considered at present.