VIL intends to raise around ₹25,000 crore from the market. If it can utilise the funds to roll out 5G and strengthen its 4G presence (around 12,700 crore is allotted to network capex), the threat of India's telecom services market turning into a duopoly recedes.
Among the other private telecom service providers, Reliance Jio (Jio) did well in FY24 with results in line with consensus, while Bharti Airtel is also estimated to do well (first three quarters have been good).
VIL's successful FPO has a direct positive impact on Indus Towers. Indus will obviously benefit from added demand as and when VIL rolls out its new network. Analysts see higher tenancy ratios on Indus Towers plus the payment of about ₹6,000 crore of receivables from VIL. Indus Towers has a policy of paying out its entire free cash flow (FCF) as dividends and it should generate FCF in FY25.
This story is from the April 24, 2024 edition of Business Standard.
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This story is from the April 24, 2024 edition of Business Standard.
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