Indus Towers Warns Vodafone Idea To Repay Dues To Secure Tower Access Following this clear-cut warning from Indus Towers, Vodafone Idea's shares fell nearly 2 per cent to INR 8.96 on BSE in early Wednesday trade
By Teena Jose •
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Indus Towers has reportedly warned telecom service provider Vodafone Idea on the non-payment of dues. The board expressed the concerns in a meeting held on Monday, about the mounting dues and the non-closure of dues from Vodafone Idea. Following the meeting, Indus Towers' board has also written to the teleco seeking immediate repayment of past dues along with the regular payment henceforth.
The reports states that, the Vi's total debts to tower companies are likely to be in excess of INR 10,000 crore with long pending dues to the Indus Towers is around INR 7000 crore, and the American Tower co owing the reminder.
The Indus Towers also made it clear that the teleco has to pay 80 to 90 per cent of the overdue money from November to render the services. It addresses that the company has been only paying 40 to 50 per cent for the last few months or quarters. If Vi fails to clear the dues post-November, the services will get disrupted, which can directly affect over 225 million subscribers.
Following this clear-cut warning from Indus Towers, Vodafone Idea's shares fell nearly 2 per cent to INR 8.96 on BSE in early Wednesday trade. As per reports, Vi's trade payables shoot up almost 13.6 per cent subsequently to INR 14,956.2 crore I the June quarter.
According to available reports, the distressed telco is planning to raise INR 20,000 crore via debt from lenders and equity. However, it has not been able to close any deal yet. Another major concern is to be noted that the Vi is not in the race for 5G. So, there might be a notably large amount of shift in the consumers.
