According to analysts, the third largest telco’s losses, are set to widen and it’s likely to continue losing customers, due to its inability to compete effectively with
and Jio in the 4Gspace.
The telco will post its fourth quarter results today after market hours.
Vi like its rivals Airtel and Jio will get pulled down by no revenue from interconnect user charges. Vi’s quarterly loss is estimated to widen to Rs 6,732 crore, stung by a combination of falling operating income and continuing customer losses.
The telco is yet to make any announcements on its fund raising plans and if any of the discussions with global private equity players will bring in parts of Rs 25,000 crore target.
With a burgeoning AGR dues of Rs 50,400 crore to be paid over 10 annual instalments, VI’s lenders are jittery. The domestic lenders may have to take on additional provisioning burden due to further delays in fund raising.
State Bank of India, , , ICICI Bank, Yes Bank, IDFC First Bank, ICICI Bank and HDFC Bank are among its main lenders.
Vi has been in fundraising talks with potential investors such as an Oak Hill-led consortium, US private equity firms including KKR, besides Canada Pension Plan Investment Board, Caisse de Dépôt et Placement du Québec (CPDQ) and Norway’s Government Pension Fund Global. The discussions have not yet been successful.
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