Vodafone Idea to divest stake in Indus Towers after Infratel merger

Telecom major Vodafone Idea is planning to monetise its 11.15 percent stake in Indus Towers on completion of its merger with Bharti Infratel.

The Indus-Infratel merger has received foreign direct investment (FDI) approval and is slated to be completed by August 31.

The company reported a loss of Rs 11,643.5 crore for the fourth quarter of FY20 – driven by statutory dues and a decaying subscriber base.

In Q3 FY 20 loss stood at Rs 6,439 crore.

Vodafone Idea also said its ability to continue as going concern was dependent on a positive outcome in the adjusted gross revenue (AGR) case.

“We continue to actively engage with the Government to provide relief on various industry related concerns. Separately, the Telecom Regulatory Authority of India (TRAI) has initiated a consultation on floor pricing at the request of all the operators, through COAI,” the telecom major said in a statement to stock exchanges.

Vodafone Idea said that it had already made payments of Rs 68.5 billion (Rs 6,850 crore) in three instalments during the quarter ended March 31, 2020 towards AGR dues.

The Supreme Court will next hear the AGR case in the third week of July.