Vodafone Idea’s (Vi) financials and operations are now being inspected by the government to ascertain the health of the company. Vi has been struggling to raise money, and the talks with the government have also taken a back seat as the promoters are yet to invest fresh capital in the company. According to a TNN report, the Department of Telecommunications (DoT) is now looking at the financials and the operations of the company to ascertain its health. The government will study the telco’s strength with the customers and its performance. Citing sources, the report mentioned that the talks about the government picking an equity stake in the telco have “more or less collapsed”. The report also mentions that the telco’s spokesperson said that they are not aware of any such development.
Is Vodafone Idea’s Management to be Blamed?
Senior officials believe that the management of Vodafone Idea is to be blamed for where the company stands today. As per the report, senior officials think that post the merger of Vodafone India and Idea Cellular, the mismanagement of the company, which includes costs such as buying “excesses” spectrum at high prices that is now lying idle, is the reason why Vi is struggling.
Vodafone Idea Not Getting any Love from the Banks/Lenders
Vodafone Idea is reportedly trying to raise about Rs 7000 crore from banks/lenders. However, a Reuters report suggests that banks or lenders are not keen on giving fresh funds to the ailing telco. The lenders first want to see the promoters pitching in fresh capital. The government will also not move ahead until the time the promoters infuse more capital into the company. The promoters have been largely silent about things here. However, a previous ET Now report suggests that the promoters are ready to infuse up to Rs 3,000 to Rs 4,000 crore. However, that will not be enough to get things moving for Vodafone Idea.
