The markets would like to believe there's an investment in the offing -- the stock has put on nearly 40% over the past month hitting a 52-week high of ₹12 on September 14. They're probably banking on CEO Akshaya Moondra's comments last month that discussions with multiple investors for both equity and equity-linked investments had progressed to the level of due diligence and were expected to conclude in the December quarter.
So far though there's nothing to show the capital infusion being talked about will come through anytime soon into the beleaguered telco. There are no signs either of the government lowering the net present value (NPV) of Vi's dues. In the last three years, the promoters have brought in 5,000 crore with a commitment to put in another 2,000 crore.
However, the 25,000 crore or even twice that sum might not be enough to put the telco back on track. Not having been able to upgrade its network, Vi has lost over 54 million subscribers in the 27 months to June and is left with 230 million subscribers; its revenue market share is a paltry 20.1%, way behind Bharti Airtel's 32.7% and Reliance Jio's 38.4%. And it hasn't been able to get its 5G take off. Jio spends about 15,000-16,000 crore a quarter on capex while Bharti invests about 7,500 crore.Vi spends barely ₹500 crore.
At the very least, therefore, Vi needs about 50,000 crore to be able to stabilise the operations and more than 1 trillion to stay in the game.
This story is from the September 18, 2023 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 18, 2023 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Murdoch ally helps Ambani build media empire in India
SOHEE KIM PR SANJAI
Pandya, Dube & Rinku: Can they finish for India at T20 World Cup?
GOING INTO THE 2022 T20 World Cup in Australia Dinesh Karthik was assigned the finisher role and the batting lineup was built accordingly.
Nestle adds sugar to infant milk and cereal, finds report
A NEW REPORT has revealed that Nestle, the world's largest consumer goods and manufacturer of baby formula, is adding sugar to infant milk and cereal products sold in India, and other Asian, and African countries.
India-made Daimler's electric mini truck to hit the road soon
INDIA WILL BE host to German trucking giant Daimler's only electric vehicle plant outside of Europe and Japan when it launches a locally-made electric light cargo truck in FY25.
Samsung eyes ₹10,000 cr from India TV biz this year
SOUTH KOREAN GIANT Samsung is targeting a turnover of ₹10,000 crores for its television business in India this year, driven by growth in sales of its mid to-premium segment models, said Mohandeep Singh, senior VP, consumer electronics business in India.
Microsoft AI Copilot speed boost for coding
WHEN SOFTWARE DEVELOPER Nikolai Avteniev got his hands on a preview version of Microsoft's Copilot coding assistant in 2021, he quickly saw the potential.
US, China debt pose risks for global public finances: IMF
THE WORLD's TWO great economic rivals, China and the US, will drive much of the increase in global public debt over the next five years, with US spending creating trouble for many other countries by keeping interest rates high, officials at the International Monetary Fund said in a report.
Language models in consumer tech
This move is designed to ensure better user experience & privacy
'Data centres' energy use doubles every four years'
Data centres are significant energy consumers, using about 2% of the world's power and emitting carbon dioxide equivalent to the airline industry.
Vi FPO: Foreign players invest big; about ₹5,400 crore raised
GQG, Fidelity buy almost 40% of the anchor investor portion
