Interest cost may force Vodafone Idea to raise funds at regular intervals

The country’s largest telecom operator — Vodafone Idea — may need to raise funds at regular intervals to meet the rising interest payments, feel analysts. In addition, there will also be outgo related to capital expenditure or capex.

Maybank Kim Eng analyst Neerav Dalal noted that with the increasing interest payments, the company would need to raise funds through equity at regular intervals. “We forecast that net debt will increase to Rs 1.4 trillion for FY22 (estimates) from Rs 1.2 trillion in FY19,” Dalal noted.

Vodafone Idea still has its Indus Tower stake, currently valued at Rs 6,160 crore. This can be