Top
Begin typing your search above and press return to search.
keyboard_arrow_down
Login
exit_to_app
access_time 2020-11-23T14:18:34+05:30
The key is to keep talking about quotas
access_time 2020-11-21T09:24:59+05:30
The democratic process in Jammu-Kashmir
access_time 2020-11-20T10:03:57+05:30
access_time 2020-11-19T11:08:50+05:30
Death knell for media freedom
access_time 2020-11-18T12:01:36+05:30
The rise of Owaisis
access_time 2020-11-16T15:36:47+05:30
exit_to_app
Homechevron_rightBusinesschevron_rightAirtel has liquidity,...

Airtel has liquidity, Vodafone to face challenge on AGR: Report

text_fields
bookmark_border
Airtel has liquidity, Vodafone to face challenge on AGR: Report
cancel

New Delhi: The dismissal of the review petition by the Supreme Court of Airtel and Vodafone poses a stiff challenge to Vodafone Idea's survival while Airtel has prepared itself with funds to meet the payments on time, ICICI Securities Limited said.

Bharti Airtel has raised capital to meet the liability, but VIL remains challenged. Airtel last week raised capital of US $3 bn, which should help it meet its AGR liability with the help of additional debt.

VIL promoters, Vodafone Plc and Aditya Birla Group, have already mentioned that if the entire AGR liability has to be paid, they will have to shut shop.

"We don't see the situation for VIL being salvaged without government intervention. Apart from other stakeholders in VIL, the government too could be one of the most impacted parties if the company shuts down as it is owed Rs 900bn in deferred spectrum dues, besides the AGR liability," ICICI Securities noted.

"We also see indirect impact on PSU banks if VIL fails to cough up the money", it noted.

The Supreme Court has dismissed the review petition filed by telcos on its AGR ruling, which means the October 24 order continues to hold good.

Bharti Airtel and Vodafone Idea (VIL) have disclosed their potential AGR liabilities at Rs 343 bn and Rs 442bn respectively, which have to be paid by January 23. Bharti Airtel has already raised capital of US $3 bn, which should help it meet the burden.

"But the same remains a herculean challenge for VIL --a challenge that cannot be resolved without government intervention, in our view. We continue to prefer Bharti Airtel in the telecom sector as it is better prepared for a worst-case scenario on the AGR front in addition to its superior operational execution", I-Sec said.

Show Full Article
TAGS:
Web Title - Airtel has liquidity, Vodafone to face challenge on AGR: Report
Next Story