Indus Towers expects Vodafone Idea to settle ₹7,000-crore dues post FPO: Report

Telecom infrastructure firm Indus Towers wants the settlement of its all pending payments from FPO-bound Vodafone Idea in one go, according to a media report.

Indus Towers Managing Director and Chief Executive Officer Prachur Sah told business newspaper Mint that the telecom infrastructure provider expects the debt-ridden company to clear all its dues in one go.

"We are pleased to see the positive developments on Vodafone Idea’s fundraise and expect that VI will clear over-dues of Indus in its entirety. We remain committed to supporting all our customers in their growth plans and are best positioned to do the same for Vi," the Mint quoted Sah as saying in a report.

The comments have come a day ahead of the launch of ₹18,000 crore follow-on public offer (FPO) of Vodafone Idea Ltd as the debt-ridden telco seeks to raise funds to boost its infrastructure.

Indus Towers in the December quarter (Q3FY24) received ₹300 crore against its pending dues from Vodafone Idea besides 100% of the monthly collection.

Quoting industry insiders, the Mint report stated that Vodafone Idea has total outstanding dues of around ₹7,000 crore to be paid to Indus Towers.

Vodafone FPO proceeds to be used for boosting network infra

Vodafone Idea in its FPO prospectus has mentioned that the issue proceeds will be used for boosting 4G and 5G network infrastructure.

VI chief executive Akshaya Moondra at the launch of the FPO had also stated that the FPO proceeds will not be used for any payments to promoter or promoter group companies.

Vodafone Group Plc, which is a promoter entity of Vodafone Idea, is also a promoter of Indus Towers along with Bharti Airtel and others.

Vodafone Idea has proposed to use FPO proceeds of ₹12,750 crore to purchase equipment for the expansion of its network infrastructure. The company aims to expand the capacity of existing 4G sites and set up new 4G as well 5G sites.

Saddled with debt burden of ₹2.1 lakh crore and quarterly losses, Vodafone Idea is fighting a battle for survival. The company lost 15.2 lakh subscribers in January, taking its mobile subscriber base down to 22.15 crore.