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Vi has Rs 27,328 crore in pending litigation, shares down 3%

In a recent regulatory filing, Vodafone Idea (Vi) revealed that it has pending claims amounting to Rs 27,328 crore against the company. These claims are currently under litigation in various courts and include demands raised by the Department of Telecommunications (DoT). The DoT has requested Rs 3,857 crore for the transfer and merger of licenses in India, while an additional claim of Rs 3,599 crore is related to a one-time spectrum charge (OTSC).

Vodafone Idea reported a loss of Rs 7,840 crore for the June 2023 quarter, causing the telecom operator’s shares to slump by over 3%. This loss marks an increase from the Rs 7,297 crore loss in the same quarter last year and the Rs 6,419 crore loss in the preceding March quarter. However, there was a slight increase in revenue, which reached Rs 10,655 crore in Q1 FY23, up from Rs 10,410 crore the previous year.

Vodafone Idea’s stock has been on a decline, trading at Rs 7.78 on the BSE, which is 3% lower. Over the past year, the stock has dipped by over 11%, while the decline over the past five years has been 75%.

Vi’s average revenue per user (ARPU) for Q1 FY23 was Rs 139, representing a sequential growth of 2.9% from the previous quarter’s Rs 135. The company reported an EBITDA of Rs 4,157 crore in the reporting quarter and an EBIT loss of Rs 1,459 crore.

Vodafone Idea was formed on August 31, 2018, through the merger of Vodafone India and Idea Cellular. The joint entity is owned by the UK-based Vodafone Group with a 45.2% stake and the Aditya Birla Group with a 26% stake.

Vi remains focused on fundraising efforts, engaging with lenders for further debt financing and exploring options for equity or equity-linked fundraising. These funds will be crucial for network expansion, including the rollout of 5G technology, according to Vi CEO Akshaya Moondra. Clayton County Register

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